Each year the ATO sees incidents where individuals and businesses become victims of dodgy tax schemes.
When tax planning arrangements go beyond what was intended by the law, they become a tax avoidance schemes and can put your savings at risk.
How can you tell a legitimate scheme from something dodgy? There are many things to look out for, but as a starting point, you should be wary of promoters who:
- claim their product is zero-risk;
- discourage you from obtaining independent advice;
- do not have a product disclosure statement;
- recommend changing private expenses into business expenses so they can be claimed against income;
- inflate or artificially create deductions; or
- suggest arrangements that involve deferring or not declaring income.
If you encounter someone promoting a tax scheme you’re unsure about, give us a call. Our team at OakWealth is always happy to help you work through it.
[Originally posted on the OakWealth Blog.]