So Im in the middle of an intimidation process with the ATO. Apparently my earnings: expenses ratio is too high for the ATO's liking, and they want to audit my return from 2017.
I had to scan and send in all my receipts, spreadsheets and log books, which I did.
But a few of the receipts have faded. Originals can be read in the right light, but not the scanned copies. I asked to take them physically in, or post them in…denied!
Found old credit card statements to cross reference the faded receipts "unlikely to accept". But "send them in". A few days later, I get a call. Nah, we won't accept them. Plus where is your vehicle invoice to support your logbook.
My vehicle books were stolen (with the original invoice inside in 2018 - I filed the police report). So have kept my insurance value, plus a red book valuation range which is $1500 higher than what I'm my claiming even at the bottom of the range. I put a post on here the other day for ideas. Denied! But I did find a tax ruling TR 97/24, that shows a substitution can be used if something is stolen (and my claim pattern has been consistent for 10 years). So questioning this "denial".
Now my logs show way more than 5000km a year (they accepted my log book). So can at least use the cents per Km method…so I thought…see later…
Now I had a rental (pulling a peasley $150/ week) in a mining town that collapsed. Cream on top was that it was mismanaged, and didn't have a tenant for the entire year. The ATO wanted proof that it was available for rent. Back then, I asked the state manager of a major national Real Estate company to look at my property, and he fired the agent immediately. He said they stuffed something up, and my property wasnt matching prospective tenants in their system. But I saw it was up for rent on RE.com (and I listed it on socials as well). So it was available. But no tenant cemented. However, with no rent, the agent never gave me a statement. So the State Manager wrote to the ATO confirming they indeed managed my property (before, during and after 2017, and it was indeed available for rent and always has been. Also confirmed they terminated an employee's position. The ATO won't accept this either.
Again, doesn't conform to their own "genuine attempt to rent" resource on their website, which suggests the agents witness statement is enough.
So been given an ultimatum. They remove ALL my work deductions (vehicle, protective clothing, travel etc ) from 2017 to 2024 (even though I have already sent them receipts & logs, and some stuff doesn't even need substantiation!). Plus they remove my property for 2017 and 2020 (as I reduced the rent in 2020 to get a tenant). But they will leave the other years on the property as is.
Alternatively, they want to audit every aspect of all my tax returns every year from 2017 onwards and I have just a few weeks to, and I quote "email them all in".
Basically forgo all my actual substantiated receipts, and they won't bust my balls. It's the EOFY… It's a terrible time of year for this. It's blatant stand over tactics.
So after ideas? Taking this to a chartered accountant is going to cost more than my return. My rents are bugger all, and my bank interest is on $150k. I feel they know this. But I'm not an idiot, and I can read their documents and rulings. I have a subscription to the Independent Taxation Examiner and know 99% of what I have claimed for. The 1% I didn't know, I kept call logs (and recordings) for the 50+ calls I made to the ATO that simply ended in them hanging up after a "too busy message". Or when I did get through (tried outside hours), we don't know the answer to that…all recorded and documented. If these get wiped in the audit, fair enough. As long as it is right, I'm happy.
So I'm m thinking of filing a formal complaint with the Commonwealth Ombudsman, listing all the ATO rulings and URLs I have conformed with, but they are denying or being unecessarily inflexible with.
As for receipts that a scanner can't pick up….come and look at them, or accept the credit card statement. They are legit and visible, just not scanable. If you don't want to send out an actual auditor, then just accept them (and we are talking about $500 total).
I also want to know why they want me to give up on my receipted claims I have already sent in. How is this remotely right?
Lastly, they are saying I can't claim my scanner, computer, power or internet…yet want me to use them for the audit (not a chance)….and even if I did, you can't "email in " several thousand receipts, invoices and logs through an email inbox anyway.
It's so bad, I was convinced I was being scammed at first.
Seems very amateur. Need it to go away, or at least leave it to September when the busy time of year has passed.
Any helpful ideas appreciated.
Cheers
I mean,
If you're claiming deductions you better have the evidence to back it up.
Personally if your house is vacant for a full year that's on you not the RE.
But yeah, 7 year old receipts are a bit brutal.