Latest news with #taxadvice
Daily Mail
26-05-2025
- Business
- Daily Mail
Expert reveals the biggest mistake Aussies can't afford to make at tax time
Aussies who rush to get their tax return in early are making a huge mistake, a peak accountancy group has warned. As the end of the financial year looms, income earners can claim up to $300 worth of work-related expenses, excluding travel, without the need for receipts. Manually claiming work expenses is often time consuming and many Aussies are tempted to complete their return as soon as possible on July 1 to get a quick tax refund so there's money in the bank to pay those bills. But Jenny Wong, the tax lead with CPA Australia - representing Certified Practising Accountants - said those who rushed to fill out their tax return could be missing out on important deductions. ' Cost of living pressures could mean some people are eager to lodge their tax return as quickly as possible to access a refund, but it's important to be patient, gather your evidence and claim everything you are entitled to,' she said. 'Firing the starting pistol on your tax return too quickly means you could end up shooting yourself in the foot. Failing to claim everything you're entitled to means less cash back than you could otherwise get.' Now is the time to chase up all those receipts to save the hassle later. 'Hopefully your receipts aren't down the back of the couch, but they might be in your emails and phone apps. Or maybe the junk draw?' Ms Wong said. Travel expenses Ms Wong said those filing their tax return too early were more likely to miss out on travel expenses incurred on the job. 'Maybe you travelled more for work and were not reimbursed by your employer for meals or other travel essentials,' she said. While it's possible to make a total claim on tax if the deductions are less than $300, this shortcut doesn't cover travel allowance, meal allowances, or the use of a car. That means workers whose employer gives them a travel allowance, also known as an award transport payment, can also make a claim if travelling for work still left them out of pocket after a workplace allowance. 'Any out-of-pocket work-related expenses could be tax deductible, but you'll need evidence in case you are asked in an audit. Think about what you've had to purchase for work. Check your bank statements,' Ms Wong said. Those using their car also need to identify which travel is used for work. 'For vehicle expenses, you must be able to identify and justify the percentage that you are claiming as business use,' Ms Wong said. 'To claim accurately, you will need to use a logbook or diary to show private versus business travel.' Buying new work tools Rushing a tax return could also jeopardise the expense of work-related items. Those working from home can claim the cost of a desk or a chair worth up to $300 in one financial year. If the item is worth more than $300, the item can be claimed on tax over several years, based on how long it's likely to last for. The same $300 rules applies to buying tools needed for the job. 'Or maybe you started a new job where you had to buy tools, subscriptions, or pay for training and security clearances, for example,' Ms Wong said. Australians have until June 30 to buy any essential work items to be able to claim the deduction for the 2024-25 financial year. Working from home claim Those working from home can multiply by 70 cents the number of hours they worked from where they lived in 2024-25. This method also requires daily diary keeping. H&R Block calculated the typical Aussie working from home would claim 1,095 hours over the financial year, adding up to $767. Or they can alternatively use the actual cost method, based on add up electricity and internet bills. 'Which work-from-home expense type makes most sense for you - fixed rate or actual cost method? If you've been good at keeping records throughout the year, the actual cost method may be more beneficial,' Ms Wong said. Tell the truth Those who lied about their work expenses are more likely to face an audit from the Australian Taxation Office. 'Getting your tax return right is your responsibility,' Ms Wong said. 'This means declaring all of your income and claiming the appropriate expenses. 'Failure to properly declare your income increases your chances of being audited by the ATO.'
Daily Mail
14-05-2025
- Business
- Daily Mail
EXCLUSIVE Super-woke footy legend turned ABC radio star Bob Murphy makes shocking sexually charged comment about his female co-host live on air
An ABC Radio host and former footy star has shocked listeners after he appeared to make a sexually charged comment about his female co-host live on air. Former Western Bulldogs star Robert 'Bob' Murphy, aged 42, had been presenting his breakfast show alongside award-winning reporter and co-host Sharnelle Vella when the comment was made. It comes after the duo began hosting the show in January 2025, after Sammy J (Samuel McMillan) announced he would be parting company with ABC. On Wednesday, Murphy and Vella had been discussing the subject of the importance of seeking financial and tax advice from registered professionals instead of using information from social media influencers online. They welcomed Eleanor Kasapidis, Chief of Policy, Standards & External Affairs at CPA Australia, on to the show to discuss the matter. After a lengthy discussion on the topic, Vella then began to make a point about how some people may be unable to afford to seek out professional financial advice and may look to social media for guidance on filing tax returns on their own. Sharnelle (left) had mentioned that her first job had been in retail during a discussion on tax and personal finance, but Murphy had responded, stating: 'Not at Spearmint Rhino?' She began by drawing on when she landed her first job out of high school. Vella said: 'I remember when I worked in retail many moons ago when I was still in high school...' But Murphy quickly interjected, saying: 'Not at Spearmint Rhino?' Vella flatly responded by saying: 'No', before pausing and then continuing with her point. 'I couldn't afford to go to a financial advisor, so I was doing my tax return myself. 'I guess that's why people are looking on social media,' before asking Kasapidis on whether she had any good advice for people looking to do their tax on their own. Spearmint Rhino is a well-known strip club chain who have venues located in Australia, the United Kingdom and the US. There is no claim by Daily Mail Australia that Vella has ever worked in a strip club and it is understood that Murphy's comments were meant as a joke. Daily Mail Australia has contacted ABC for comment. Murphy (right) was also employed by Fremantle as their head of football operations back in 2021, before taking up a role with ABC earlier this year Murphy, a highly respected footy player and a two-time All-Australian, has had a bumpy start to the year in his new role, after the breakfast show's ratings dipped from 7.9 per cent to 6.3 per cent market share in March. Earlier this year, 42-year-old former AFL star had also been criticised by rival radio presenter, Tom Elliott, for being 'woke' after he used the term 'AFLM' to describe the men's top-flight Australian rules football competition. 'Does anybody else honestly want to call the AFL the AFLM?,' Elliott said on 3AW Mornings. 'In America, you have the NBA and then the WNBA, that works fine. 'I think he [Murphy] is the only person who does this. He persists in calling the AFL the is wokeness.' Murphy, who retired in 2017 after making 312 appearances for the Western Bulldogs, was also understood to have slept through the beginning of his Friday, April 11th, breakfast radio show, leaving Vella without her co-host. His alarm had not gone off and he missed his 5:30am live start, turning up to the studio 45 minutes late. 'Good morning Melbourne, well it does say Sharnelle Vella and Bob Murphy, but it is just me this morning, on my own,' Sharnelle told listeners when the show began. 'People are texting about where Bob is. He will be here shortly, no one panic.' When Bob did turn up, he revealed what had happened live on air. 'Good morning everyone... it has been quite the morning,' he said. Murphy then explained that his wife, Justine, had to get him out of bed. 'Somehow, overnight the phone charger must have dislodged a bit. My darling jumped out and said, "It is 5:30am."' The former Western Bulldogs star then apologised to listeners: ''I feel like I have let you down. I suppose it had to happen.' Sharnelle, though, poked fun at her co-host, joking: 'I'm off to the shops to buy him a charger.' Later in May, ABC Radio's ratings took another hit, with the latest GfK radio survey stating Vella and Murphy's breakfast slot had slid down by a further 0.7 percentage points, falling from 6.3 to 5.6 per cent of the total audience share. After hanging up his boots, Murphy has worked in a variety of media capacities, notably writing a column in The Age, appearing as a panellist on Fox Footy's AFL 360 and had joined Andy Maher to host the afternoon drive show on 1116 SEN.
News.com.au
13-05-2025
- Business
- News.com.au
Facing prosecution: Aussies warned against taking ‘Finfluncer advice'
Taxpayers are being warned just because someone has a large following, it doesn't make them a tax expert, with TikTok 'Finfluencers' and AI being called out ahead of the end of financial year. With tax season approaching, the accounting industry body warns of the pitfalls of getting free advice from social media platforms, noting Aussies face big fines and prosecution if they falsify their tax return. Chartered Accountants Australia and New Zealand tax lead Jenny Wong, said it's concerning many Aussies will watch this content and assume they are getting free expert advice. 'In many cases the advice from these accounts is simply wrong. In other cases, the claims have an ounce of truth but would apply only to a very small group of workers,' she said. According to Ms Wong, getting bad tax advice could result in missing out on legitimate entitlements or worst still, big fines and even prosecution. CPA Australia took aim at some of the TikTok users' advice, including claiming a pet as a 'guard dog' while working from home. Another claimed they can deduct the cost of a luxury handbag by telling the ATO it is used as a work bag, while a third told Australians they can claim thousands in fuel rebates without a receipt. 'Exaggerating a claim can have consequences. Making false tax claims could result in hefty fines, a criminal record or even imprisonment. Arguing that you took advice from a finance influencer on TikTok won't cut it – your tax is your responsibility,' she said. Ms Wong also warned ChatGPT and other OpenAI tools which should also be treated with caution. 'Nothing can beat the sound advice of a professional tax agent,' she said. 'AI tools are only as good as the information you put into them. It may be tempting to ask AI bots for tips, but they are simply not able to compute the nuances of the Australian tax system or your specific circumstances.' Instead of relying on tax tips online Ms Wong offers:
Forbes
11-05-2025
- Business
- Forbes
The Danger Of Relying On AI For U.S. Tax Advice
U.S. international tax questions demand precise, up-to-date expertise. Professional judgment remains ... More critical. AI simply doesn't have anything close. Artificial intelligence tools such as ChatGPT and Grok are becoming household fixtures with Americans increasingly turning to them. These tools are being used to find answers on everything from cooking recipes to complicated tax questions. How reliable is AI for taxpayers seeking tax advice, particularly on U.S. international tax issues? While AI has laudable capabilities and provides great speed in its responses, the reality is that currently in the U.S. international tax area (indeed, in the tax area generally), AI often delivers inaccurate or incomplete information. Since U.S. international taxation is such a highly specialized field, AI can leave users at risk of costly mistakes. For now, a thorough and proper tax analysis requires the expertise of a seasoned professional who can understand the interplay of the tax law, Treasury regulations, IRS notices and rulings, court cases, and international tax treaties. There is an undeniable appeal of AI in the complicated U.S. tax space that often overwhelms even tax professionals, let alone the lay person. With its speedy answers that are generated so easily and for free, the AI tool seems a godsend in the complicated tax world. For the more straightforward and typically domestic (as opposed to international) tax issues, these tools might be sufficient to point users in the right direction. The cracks in AI's armor start to show when tackling U.S. international tax matters. This is not only because international tax is an area rife with complexity but also because it is highly dynamic. Aside from the technical aspects involved, U.S. international tax is shaped by frequent regulatory updates, IRS interpretations, and judicial decisions. AI struggles to keep pace. Take for example, the proliferation of IRS Practice Units, many of which focus on international tax matters. Practice Units are internal IRS training materials for examiners. The IRS just started issuing these in 2020. As international tax issues are becoming more and more common in today's global economy the IRS has had to be proactive training its agents to understand them and catch noncompliance. The Units are publicly available on but are not binding and cannot be used as precedent. From January to the first week of May 2025 the IRS has already issued 35 such Units. Of these, 22 cover complicated international tax topics such as 'French Foreign Tax Credits', 'Base Erosion Anti-Abuse Tax', 'Foreign Tax Credit Computations', 'Foreign Tax Credit Limitations', 'General Deductions of a Foreign Corporation Engaged in U.S. Trade or Business (Non-Treaty)', 'Reduced Foreign Taxes Under Treaty Provisions' and many more subjects delving into technical international taxation. The Practice Unit resource is just one of many forms of tax guidance that is constantly evolving. The tax laws, regulations, treaties and updates may not be picked up by AI models resulting in incorrect or incomplete answers. The problem of AI's questionable accuracy has its roots in how AI generates its responses. AI tools such as ChatGPT and Grok rely on so-called 'large language models' trained on a huge and diverse amount of text that includes online forums, books, articles, websites and public records. This training results in an end-product that sounds like highly intelligent answers cloaked in perfect conversational text. Critically, this alone is not sufficient for a tax analysis, and it is all too easy to forget that AI cannot think independently. Professional judgement remains critical. AI tools do not guarantee accuracy. This is particularly so in nuanced areas such as international tax which demands precise, up-to-date expertise. There's the significant problem of 'simplexity'. The tax law is highly complex. If AI presents the law as if it is simple, this can result in presenting the law as something different from what the law actually is, as has been encountered with the IRS chatbot 'Interactive Tax Assistant'. Other problems involve misinterpretation, relying on outdated sources, entirely missing out on important information, conflating similar but distinct international tax concepts (e.g., it might confuse the Foreign Tax Credit with the Foreign Earned Income Exclusion) and even 'hallucinating'. My own experiences with an AI 'hallucination' occurred recently. The first, when I asked whether there was an exception in the FBAR filing rules for non-U.S. accounts owned by a foreign government entity. I was examining whether Pope Leo XIV, a U.S. citizen, might have a possible FBAR obligation with regard to accounts at the Vatican Bank. AI incorrectly reported that such an exception existed (the exception applies only to foreign financial accounts of any governmental entity of the United States). Another incident occurred when I asked if the U.S. had negotiated totalization agreements with the countries of Ecuador or Costa Rica and received an (incorrect) answer in the affirmative. No such totalization agreements exist. Other tax professionals testing AI have found incorrect answers, in one instance 100% of the time. Even though answers were on the right track, AI failed to catch the critical nuances, of which the U.S. tax laws are replete. Any of these missteps could lead to incorrect answers or calculations, potentially triggering an IRS audit and penalties. The problem, especially for the layperson, is that the AI generated responses sound so good, that they are taken at face value. Getting things wrong, especially in international tax compliance which remains a top IRS enforcement priority, can lead to serious consequences. Errors in reporting foreign income or assets involves stiff penalties. For example, there is a $10,000 penalty for an untimely FBAR or foreign information return such as Form 8938 or 5471; a 40% accuracy-related penalty on unpaid tax for errors involving foreign assets. Reliance on AI and AI chatbots will not suffice as 'reasonable cause' to avoid imposition of IRS penalties. Last year, the U.S. Taxpayer Advocate Service cited a Washington Post review finding that AI chatbots from leading tax return preparation companies gave inaccurate tax advice up to 50% of the time on complex tax questions. Beyond the significant financial costs that can result from inaccurate AI tax advice, taxpayers face the stress of audits and the burden of correcting mistakes. Currently, AI has serious shortcomings when it comes to U.S. international taxation. Experienced international tax professionals occupy an irreplaceable role and unlike algorithms, they specialize in deciphering the many nuances involved in international tax matters. The top professionals stay current on IRS guidance, monitor treaty updates, and analyze case law on a regular basis. They tailor tax advice to a client's unique situation. Doing this often requires using professional judgment because a one-size-fits-all approach does not work in the international tax world. Tax professionals strategize and provide all-important context that can optimize the tax outcome for each particular case. AI has yet to master any of these skills; it has a long way to go. This isn't to say AI has no place in the world of international tax planning. It can certainly be a useful time-saving tool and starting point for a general explanation of unfamiliar tax concepts. Relying on AI alone, however, is a gamble not worth taking. In time, as AI inevitably evolves, its accuracy and abilities will develop, but at the moment AI is not a substitute for a qualified tax professional. Stay on top of tax matters around the globe. Reach me at vljeker@ Visit my U.S. tax blog
