Taxes can be a source of nightmares for businesses and individuals. Seeing a huge portion of your profits or salary slashed down can be a painful sight for most taxpayers. There are even instances when you might be jailed for simple errors in the financial reports you’ve submitted to the government.
Whilst paying taxes can be a painful task, they are part of your obligations as a citizen of the country. These are used to fund government projects and even pay for emergency services. Many people are unaware that they can reduce their financial obligations by doing some tweaks with the assistance of accountants. Don’t worry. These are completely legal:
Maintain good tax records – One simple way to reduce your taxes is by keeping the receipts in every purchase you make as some of them can be used to for tax deduction, especially if they are related to your job. The Australian Taxation Office says every taxpayer is entitled to a work-related deduction so long as the expenses are not reimbursed by the company and they are backed by actual evidence.
Donations to charity – Doing good can go a long way, especially to your tax obligations. Every donation of more than $2 to registered charity institutions can lower your taxes. You just need to ask for receipts from the institutions.
Invest – Some investment expenses are tax deductible. The government grants these deductions to encourage people to invest in financial instruments. Accountants know which of your investments are qualified for deduction.
Consult with professionals – For ordinary people, taxation is a complicated subject. To be enlightened in this topic, you need to seek advice from accountants and taxation experts to know more about the nuances of taxation. Experts in this field are updated on the latest legislations and other government provisions.
Paying huge taxes can be hard to bear, but there are legal provisions that can reduce the amount of money that you will be paying for the government. Make sure they are legal; otherwise, you might face strict penalties.
The accountants Brisbane help their clients build a more efficient, profitable and valuable business and they have identified key areas that distinguish them from other accounting firms.