The Most Common Illegal Employee Tax Avoidance Strategies
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).
Similar posts you may like
- Establish a Family SMSF
A self managed super fund (SMSF) is a superannuation trust structure that provides benefits to its members upon retirement. The main difference Read more
- Infamous Tax Evader – Al Capone
Alphonse Gabriel “Al” Capone (c1899 – 1947) was an American gangster who attained fame during the Prohibition era as the co-founder and Read more
- Unique selling proposition
The unique selling proposition (USP) is a marketing concept that states successful advertising campaigns make unique propositions to customers that convince them to Read more
- Big riches with small changes and little effort
Small adjustments to our spending habits executed over our working life can have significant impacts on our retirement wealth, regardless of how little we 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