The Most Common Illegal Employee Tax Avoidance Strategies
1 November 2017
The top 7 illegal employee tax saving strategies in Australia are:
- Employees or contractors not declaring cash wages.
- Not reporting capital gains on the sale of shares or property.
- Not declaring interest, dividend or rental income.
- Not declaring overseas income like wages, capital gains, rent, etc.
- Claiming private expenditure as a work deduction (like home to work travel, meals and entertainment).
- Filing a tax return on July 1st with inflated earnings and tax withholding, collecting their return seven to 14 days later and leaving the country before their employer has filed with the ATO, and the data can be verified. Popular with some overseas students who are never coming back to Australia.
- Residency manipulation – Where individuals and legal entities attempt to present themselves as residents of a low tax jurisdiction, or of nowhere (e.g. constantly travelling and of no permanent abode).
Posted in Blog, Tax Planning
Similar posts you may like
- Tax Planning Sin 7: Inadequate Tax Planning Training
Most practice principals meet the Tax Practitioner Board requirements of thirty hours accounting and tax training per year. Unfortunately, this is normally exclusively related Read more
- Partnership of Discretionary Trusts
A partnership of discretionary trusts is a partnership where each partner is a discretionary trust. This is a good structure for unrelated parties Read more
- 6 Strategies To Promote Tax Planning Services To Your Clients
Have 5 different Tax Planning leaflets on display in the reception area of your office. Some clients will then pick them up and read Read more
- The Hair Powder Tax of 1795
During the 17th and 18th centuries the wearing of wigs by men was very fashionable. Women didn’t wear wigs but instead added hair Read more
"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2