Expert reveals tax slip-ups the ATO will be watching out for this year, including the 'biggest' misclaimed expense contributing to its $8.7 billion shortfall
H&R Block’s Director of Tax Communications said working-from-home related expenses are the “biggest element” when it comes to lost tax, with the ATO set to look closely at the area this tax season. The ATO will be looking carefully at particular aspects of tax returns amid a reported $8.7 billion shortfall. Picture: Getty Images.
Particular details the ATO will look out for include “excessive interest expense claims” – such as where property owners have tried to claim borrowing costs on the family home as well as their rental property. Two major areas of interest will be working from home related expenses and investment properties. Picture: Getty Images.
“The ATO has numerous third-party sources of data which it can use to identify if you are receiving rent and they are on the look-out for mismatches with the tax return data that you report,” Chapman said.