In the past we have all known someone who's heard of someone that doesn't pay any tax. As accountants who have prepared many tax returns year on year, we can tell you from experience that this is an urban myth.
Today the ATO runs an increasingly sophisticated data collection and matching regime with an enormous amount of data supplied from third party sources (the ATO claim on their website that there is more than 600 million transactions reported to them annually) that they use to validate and analyse tax returns. You simply just can't hide income streams or claim non-existent deductions and expect the ATO not to be able to check. The concept of anyone paying 'no tax' is just false in Australia today.
However, there are many ways to effectively and legally minimise the amount of tax you pay.
Depending on your situation, our experienced team at Murray Nankivell will develop a set of strategies to help you minimise tax liabilities and reach your financial goals. All taxpayers are allowed to arrange their affairs in a manner that minimises their taxation liabilities but remains legal.
Due to the size of our firm we are able to harness and transfer the knowledge gained from many years of experience in implementing tax minimisation strategies. At Murray Nankivell we spend time researching changes to tax legislation and how these changes are able to be applied favourably to our clients. We make sure that all of our team members receive the latest information and training to make certain that our practices and strategies are not always effective.
Here are some of the simple strategies that have been effective for our clients. Please understand that the information on this website is general information only, and Murray Nankivell is, by means of this information, not rendering professional advice or services. This information has been prepared without considering your circumstances and you should seek specific tax advice about your own circumstances.
A good place to start in minimise tax is to look at your taxable income.
The trading profit of a business is often not the same figure as your taxable income. The latter is effected by tax laws which change the timing of when income is recognised and when deductions are allowed. On occasions some expenses are permanently disallowed or alternatively some income is exempted from tax. These tax laws can work in your favour with some careful tax planning.
Taxable income in a tax year is usually the net of assessable income less allowable deductions for the year. If you can defer some of the income to a later year, or accelerate planned expenditure so that it is claimed in this tax year, then you will succeed in reducing your current year's tax.
Please find below a small selection of strategies that Murray Nankivell accountants have used to minimise tax.
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