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The Australian Taxation Office (ATO) is warning businesses to be vigilant about fraudulent tax schemes involving "barter credits" that promise unusually large tax deductions.
These arrangements typically involve purchasing barter credits through a business network and donating them to a charity. The issue arises when the credits are allegedly valued significantly higher than what was originally paid, allowing participants to claim inflated tax deductions.
The ATO notes that these types of schemes often circulate through personal networks that include friends, family and colleagues, which means it can be easy to miss the red flags.
Here’s what to watch out for:
* Offers to arrange charitable donations through barter credits
* Promises of substantial tax savings
• High fees or commissions based on tax savings
* Pressure to act quickly
• Requests for secrecy
The consequences can be serious, resulting in an ATO investigation and repayment of tax with penalties and interest charges.
If you're ever approached with an arrangement that seems too good to be true, seek advice from a qualified tax professional before proceeding.
#accountant #tax #taxfraud
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