Tax Return:: Record-Keeping for Your Tax Return
Hello, this is your tax and super specialist, P&C Tax Professionals.
As many of you would know, maintaining good records of your income and expenses will no doubt make your life a lot easier when it comes to lodging your tax return. Today, we will go through some of the key rules in good record-keeping that taxpayers should be mindful of.
Some of the important rules for record-keeping consist of:
> keeping all records for the payments you have received during the income year (e.g., income statement from the employer if they report to the ATO via the single touch payroll system, PAYG payment summary, payslips, bank statements, managed fund statements, etc)
> keeping all of your receipts for the work-related expenses you are intending to claim (the receipt must have the purchase date, purchase price, and a description of the product or service that you paid for)
> keeping all records related to the starting, operating, changing, and selling/closing of your business that is considered to be relevant to your tax and super affairs
> keeping detailed records of your shares and crypto transactions, dividends, and rental property details which may need to be declared on your tax return
> storing the records in a safe place in order to avoid damage and protect any information from being altered
> keeping your records for at least 5 years from the date you lodge your tax return (moreover, for those of you who are running a business, you must keep records of your losses for up to 5 years after you have claimed the loss)
> making sure all of your records are in English or can easily be translated to English
By practicing good record-keeping, you would be able to prove the information you have provided on your tax return to the ATO in a timely manner hence, avoiding any exposure to possible penalties that may be charged.
In the meantime, if you have any further questions in relation to your tax return or super, please feel free to contact us through our official Facebook Page (P&C Tax Professionals – Australia) or send a message to our email address at pnctax@naver.com.
Thank you and bye for now!