In case you missed it, the ATO sent out a disturbing message yesterday warning property investors that they shouldn’t ‘bet against the house this tax time’.
It’s hard to know if the ATO is endeavouring to develop a personality or they actually see taxpayers as punters in a game designed to ensure the house always nets a profit, regardless of the success of the patrons.
What’s even more disturbing is the dubious messaging. According to the ATO, 70% of the 2019-20 returns selected for a review required adjustment which implies, to some degree, a level of incompetency within the industry. What the ATO fails to publicise is the underlying variables that impact that statistic.
We all know the ATO auditing system is continually evolving with a series of 20+ computer models run on every tax return to flag suspicious data or abnormalities, so were the selected returns already flagged by this modelling or just random? And what percentage were taxpayers who self-lodged through MyTax? And just for completeness, what was the sample size of returns for this exercise?
The only useful information the ATO did disclose was that the number one cause leading to the disallowance of rental property claims continues to be where taxpayers are unable to produce receipts or other documentation to substantiate the claim.
In fact, according to the ATO, failure to substantiate netted them a return of $13.7 billion from the total 467,884 adjustments in 2019-20 which clearly means all taxpayers need to get better at this game, not just property investors!
Well hold that thought because a Gold Coast start-up is here to play that game and give individuals smart tax tools to level the playing field against the ‘house’.
Designed and created by Accountants & Property Investors, TaxTank is the first software built specifically for individual taxpayers and property investors to challenge the ATO’s audit targets and transform the way individuals manage tax throughout the year.
It is the ONLY software on the market that shows individuals their real-time tax position 365 days a year, whilst providing a permanent archive for receipts and documents to protect clients from ATO adjustments year after year.
What’s more, for property investors TaxTank is much more than just tax! TaxTank has integrated with Corelogic to show equity positions, LVR ratios and property performance comparison in real time. Plus, clients can add portfolios for properties held in trusts, companies, SMSF’s and even their principle place of residence to centrally manage all properties in one place.
TaxTank allows property investors to;
- Monitor their investment properties, manage depreciation, expenses and property growth forecasts
- Seamlessly manage tax for properties let through accommodation sites like Airbnb and Stayz
- Integrate with live bank feeds to reconcile transactions throughout the year
- Store all their receipts and important documents to protect them from ATO audits
- Estimate their real-time tax position to make better decisions to reduce tax.
- Invite their accountant, chat live and review their tax position
“Aussies are having to tread through an undeniably complex tax system with rules that keep changing, TaxTank is here to help remove the burden and put the power back into their hands,” says founder Nicole Kelly.
“The ATO is jumping to fill the gap with MyTax; however these services are geared to ensure compliance not effectiveness and completely remove accountants from the equation.
“TaxTank has a built-in platform for accounting firms to directly interact with clients and share information to make sure clients are getting it right and claiming every possible deduction,” Nicole says.
TaxTank is available to individuals as a monthly subscription starting from as little as $6 per month and is completely tax deductible.
TaxTank is completely invested in changing the game so has made the accounting platform available FREE for all accountant firms. No strings attached.
For more information visit taxtank.com.au.