Taxing is not everyone’s cup of tea. Saying that tax is perplexing is selling diamonds at a decent amount. There are a lot of numbers with a set of rules and regulations that are tough to handle. And being a business owner, you have a lot to do otherwise as well.

That’s why most businessmen across Australia prefer to hire a tax accountant to handle their company tax return department. As they are pretty much aware of the fact that any error can bring a lot of trouble in their paradise. Thus, it’s better to let the best do the job.

But there are certain things that you must be aware of as educating yourself a bit is beneficial for your business’s smooth run. You must do your bit and work in alignment with your tax accountant as this will make the task easier for both of you and there will be fewer changes or errors.

Let’s have a look at the aspects of filling a company tax return.

• Gather all the Necessary Information

It is extremely important to make sure that you have all the information regarding your earnings with you along with the required documents. You need to hand over them to your tax accountant so that he gets a clear picture of the scenario.

This will immensely help him in filling the CTR correctly as well as in ensuring that you get good numbers as returns. As your accountant must get you more money to the table as a tax return. But you need to provide him with details for that and don’t hide anything from your tax accountant. He is the person you need to be completely honest with.

Moreover, leaving out some incomes will invite scrutiny from the ATO. They possess all the records of your income and look into accounts to compare with the submitted documents. Thus, it is imperative to enter correct and complete incomes. 

• Understand Which ITR Form is for You

Selecting the proper ITR Forms is essential for the taxpayers. The government has specified seven ITR forms for FY 2022-23. ITR forms ITR-1, ITR-2, ITR-3, and ITR-4 are applicable for individuals.

The taxpayer has to choose the form based on their income and category. If the ITR forms are not selected correctly, the taxpayer may need to file ITR again on the notice from the income tax department.

• Not Keeping Receipts is a Huge Blunder

Forgetting to keep receipts of purchases can be a costly mistake. Unfortunately, this is one of the commonest mistakes of people. Without receipts, you can claim up to a maximum of $300 worth of work-related expenses. Thus, receipts are proof to gain a rightful tax deduction and get a bigger tax refund. 

If you are caught over-claiming deductions, however, ATO will ask you to repay some or the full amount plus interest charges and penalties. It is better to claim for deductions that can be proven and avoid coming under ATO scrutiny. Or else you might need to sit in a hot tub with the ATO.

Summary

It takes two to tango and similarly you and your tax accountant need to be on the same page and in harmony to ace the task of filling company tax return. So, pull up your socks and hustle.