eurovision 2012

Finally – it’s here – I have been waiting for this weekend for the last 12 months. Forget about the AFL grand final, forget about FA cup – what I am talking about is much better and exciting than that. Yes – I am talking about EUROVISION SONG CONTEST – 3 glorious nights of pure entertainment like we have never seen before. So jump on my band wagon and improve your life by experiencing this extravaganza…….

Now back to more boring taxation:

As we are heading towards the end of the financial year, for the next few weeks I will concentrate on articles to do with tax. Tax time is good for us accountants but not so good with tarpapers because as a rule we all hate tax - right?

The tax office regularly is in contact with us tax agents with emails and here is the latest one:

“In the lead up to tax time, your clients may ask you about minimizing tax through tax-effective schemes. You can help your clients avoid penalties or tax debts by explaining the difference between legitimate tax minimisation and abusive tax avoidance schemes.
Your clients may ask you about minimising tax throughtax-effective schemes. They may ask you to complete a tax return based on advice they obtained from another scheme promoter. You can help your clients avoid penalties or tax debts by explaining the difference between legitimate tax minimisation and abusive tax avoidance schemes. Taxpayers are entitled to minimise their taxation liabilities and receive benefits provided under the law through investment activities. However, investment schemes and legal structures that do not comply with the law are considered to be aggressive tax planning arrangements – commonly referred to as tax schemes.”

To date I don’t think there is a tax avoidance scheme that I have not come across or heard of in the past but they keep coming around every year. Personally, I will never get involved in anything that I know is a sham and clients asking me to get involved with them are quickly shown the door. And yet for some reason there is still that feeling amongst some people that there is that “secret” on how not to pay tax.

There are genuine legal items that may reduce the tax you pay but they are all part of the legitimate tax rules.

So, before you consider any fancy tax schemes – think about it, research it and if still not sure speak to a professional. The Tax Office comes down very hard on tax cheats.

Remember! It is your responsibility to comply with the tax laws. If you are involved in a tax avoidance scheme you will be liable for firstly for the tax that you avoided in the first place, plus penalties plus interest. You have been WARNED……….