Latest news with #taxreturn
Khaleej Times
03-06-2025
- Business
- Khaleej Times
NRIs in UAE: How to file tax returns for capital gains
Question: I have not been filing my tax return in India after I came to the Gulf. However, during the financial year 2024-25 I made capital gains on sale of investments and therefore I will be filing my tax return. Can you please guide me and let me know the last date for filing the same? ANSWER: Generally the last date for filing the tax return is July 31 for persons who are not liable to file a tax audit report. However, this date has been extended to September 15 for the current assessment year 2025-26. The reason for this extension is that certain amendments have been made to the law which has necessitated revision of the format of income-tax returns requiring the tax department to streamline the technology platform as all returns have to be filed online. Given the increased reporting requirements, the extension of time till September 15, 2025 will give you the opportunity to ensure that proper disclosures are made in respect of the capital gains made by you during the financial year ended March 31, 2025. If any tax has been deducted at source from the interest or dividend earned, you will be able to collect the relevant details from Form 26 AS which is on the website of the tax department. You must ensure that the correct figures are reflected in your tax return so that the assessment is made seamlessly without any further inquiry from the tax authorities and any amount due to you is refunded immediately upon such summary assessment being completed. Question: Can you throw some light on the external commercial borrowing regime for Indian corporates. What are the guidelines? ANSWER: External commercial borrowings are allowed to Indian companies either under the automatic route or under the approval route where specific permission of the Reserve Bank of India/Finance Ministry needs to be taken. Indian companies raise loans in foreign currency primarily to access a substantial capital at interest rates which are lower than those prevailing in India. Thus, large scale projects can be financed at international interest rates. Loans can be obtained in foreign currency for import of capital goods as well as for overseas acquisition of foreign companies. Financial services companies are also eligible to resort to external commercial borrowings. In fact, during the financial year ended March 31, 2025, Indian companies were granted permission to borrow an amount of $61.8 billion which is a significant increase from $49 billion raised in the earlier financial year ended on March 31, 2024. The surge in external commercial borrowings highlights the growing confidence of foreign institutions in India's economic growth. Several Indian companies have been able to attract foreign funds to meet their working capital needs as well as to refinance existing loans. Investment in infrastructure projects attracted the major amount of loans from overseas agencies. The semiconductor industry, being the sunrise industry in India, was able to raise substantial funds in the last financial year. Question: Are professional services firms allowed to raise capital from foreign sources? Certain private equity firms are keen to invest in well-established firms in India. ANSWER: Professional services firms are permitted to raise funds from overseas markets within the regulatory framework. Globally, over the last two years, professional services firms have received private equity or sold holdings in their regional arms to fuel global expansion and invest in technology. This worldwide trend of private equity investing in professional services is gaining traction in India as well. While the Big Four are well capitalised, other accounting firms in India are using the merger and acquisition route to grow at a rapid pace. Some of these firms are looking to invest in small CPA firms in the United States for which they seek private equity funding. The India-US corridor offers great potential with Indian back-end capabilities supporting the American operations. In short, access to private capital provides a key competitive advantage which helps medium sized firms in India to invest in technology and acquire smaller professional outfits. Corporatisation and capitalisation are the two engines on which Indian professional services firms are planning to go international. Firms which originally provided audit and tax related services are now moving into technology-based services covering a diverse range of activities which require employment of highly paid technical personnel from different disciplines. The writer is a practising lawyer, specialising in corporate and fiscal laws of India.
Forbes
29-05-2025
- Business
- Forbes
Ghost Tax Preparer Pleads Guilty To Wire Fraud Conspiracy, Faces Up To 20 Years In Prison
To remain hidden, a ghost preparer will accept payment from a taxpayer to prepare a tax return but will not sign the return, which means the return appears to be self-prepared. getty An Augusta, Georgia, man has pleaded guilty to wire fraud conspiracy related to a 'ghost' tax preparation business. As a result, Allen Brown now faces up to 20 years in prison. It's a good reminder to steer clear of ghost tax preparers. A ghost preparer is a tax preparer who isn't on the IRS's radar because they do not have a Preparer Tax Identification Number (PTIN). To remain hidden, a ghost preparer will accept payment from a taxpayer to prepare a tax return but will not sign the return, which means the return will appear to be self-prepared. (For e-filed returns, the ghost preparer typically prepares the return but refuses to digitally sign as the paid preparer.) By law, anyone paid to prepare or assist in preparing federal tax returns must have a valid PTIN. Paid tax preparers are required to sign and include their PTIN on the taxpayer's return. However, some tax preparers do not do this—those preparers are known in the industry as ghost preparers or black market preparers. Ghost preparers tend to set up shop around tax time, usually as a short-term rental in a busy area or a community gathering place, such as a church. They tout "big and fast" tax refunds to taxpayers, almost always in combination with a refund anticipation type loans. They advertise low fees to get taxpayers in the door, but the costs for other services, such as refund loans that are tied to the size of a refund, quickly add up. The result? Incentives to cheat, including reporting bogus Head of Household filing status, inflated Earned Income Tax Credits (EITCs), made-up education credits, and fabricated business expenses. That's what happened here. According to the plea agreement, Brown operated a ghost tax preparation business at his home and a church. As part of the business, he charged clients a tax prep fee of around $500 plus 10% of any fraudulent tax refund he and his other 'ghost' preparers obtained for them. To inflate the refunds, Brown trained his employees to prepare false income tax returns with bogus medical and dental expenses. They also fabricated fuel tax credits. The fuel tax credit (FTC) is claimed for various nontaxable uses of fuel, including farming and off-highway business use. It's largely designed for off-highway business and farming use—that necessarily means that most taxpayers don't qualify for the credit. Off-highway business use is defined as any off-highway use of fuel in a trade or business or in an income-producing activity where the equipment or vehicle is not registered with the state government and is not required to be registered for use on public highways. Examples include stationary machines such as generators, compressors, power saws, and similar equipment; vehicles for cleaning purposes; and forklift trucks, bulldozers, and earthmovers. In contrast, a highway vehicle is any "self-propelled vehicle designed to carry a load over public highways, whether or not it is also designed to perform other functions." A public highway includes any road in the United States that is not a private roadway, including federal, state, county, and city roads and streets. Highway vehicles, which include passenger automobiles, motorcycles, buses, and highway-type trucks and truck tractors, are not eligible for the fuel tax credit. To be eligible for the credit, taxpayers must have a business purpose and engage in a qualifying business activity, such as operating a farm or purchasing aviation gasoline. But unscrupulous preparers convince taxpayers to claim the credit to receive a large refund. Sometimes, the credit is clearly fraudulent, with taxpayers claiming to have purchased and exported large quantities of fuel overseas. These customers may be described as "OTR" (over-the-road) truck drivers and "long-distance" truckers (remember, those taxpayers don't qualify for the credit). In other instances, schemers suggest taxpayers can claim the credit in conjunction with routine business mileage. While a business mileage deduction is available for the use of a vehicle in your business, it is very different from the fuel tax credit—you don't qualify for the credit simply by buying gas at the pump. Since taxpayers could receive inflated tax refunds by participating in the scheme, Brown and another individual offered clients two bold filing options: 'Standard' or 'I'm Not Scared.' The 'Standard' option generally resulted in a fraudulent tax refund of $2,000 to $9,000, while the 'I'm Not Scared' option generally resulted in a fraudulent tax refund of $14,000 to $30,000. As part of the 'I'm Not Scared' option, Brown instructed ghost preparers to falsely claim FTCs and bogus income and expenses on Schedule C, as well as fake medical and dental expenses on Schedule A. For the 'Standard' option, ghost preparers would file returns reporting bogus income and expenses on Schedule C, as well as improper Sick and Family Leave Credits. As part of pandemic relief, eligible employers were entitled to tax credits for wages paid to employees for certain leave taken due to COVID-19. Tax credits for paid sick leave and family leave were also available to self-employed taxpayers. These tax credits were designed to help taxpayers recover from missed workdays due to pandemic-related illnesses, quarantine, or absences for family care. The credits for self-employed individuals were only available for 2020 and 2021 during the pandemic—they were not available for 2023 or subsequent year tax returns. The refundable credits were worth up to $5,110 for qualified sick leave wages and up to $12,000 for qualified family leave wages, but they could not exceed self-employment earnings. Shady preparers suggest to tax preparers that almost anyone will qualify for the credits, even when the credits are clearly not proper. As a result of his scheming, Brown and his conspirators claimed at least $1,003,631 in fraudulent income tax refunds. They also collected approximately $130,000 in fees. With Brown's guilty plea, he faces up to 20 years in prison, three years of supervised release, a fine, and restitution. The scheme was investigated by the IRS—Criminal Investigation (IRS-CI) Regardless of who prepares a tax return, the IRS advises taxpayers to review their returns carefully and ask questions before signing. Taxpayers should verify their routing and bank account numbers on the tax return for any direct deposit refund, as ghost preparers may attempt to include their own bank account information instead. It's just as important to choose a tax return preparer wisely. If a ghost tax preparer refuses to sign your return, find a competent tax professional who will prepare and sign your return. You can also check the IRS directory to find a list of tax preparers in your area who currently hold credentials recognized by the IRS or an Annual Filing Season Program Record of Completion.
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.'
BBC News
26-05-2025
- Business
- BBC News
Jersey paper tax return form deadline warning from government
People in Jersey who do their tax return on paper are being reminded by the government that they have until Saturday 31 May to file under half of taxpayers have submitted their returns for 2024 so far, with more than 18,000 of them being paper ones, it have until Thursday 31 July to submit an online return - in 2024, 51% of people submitted their tax returns Summersgill, comptroller of revenue, said: "It is always best to file a tax return early as this increases the likelihood of monthly tax deductions from employees' salaries not changing significantly in future months." The government said 88% of people's 2024 returns were assessed within 30 days of submission.
Yahoo
26-05-2025
- Business
- Yahoo
How getting ahead on your tax return can help cut your tax bill
If you do a tax return, there's a key date to be aware of in May. If you're completely self-employed you can get cracking on your tax return on the first day of the tax year on 6 April. However, if you get any of your income from employment, you'll need to wait for your P60 to arrive, showing the salary and benefits you got this year. Your employer has to give you this by the end of May, so this is the time to get stuck in. Nobody would blame you for wanting to put off the boredom and anxiety of a tax return to the last possible second. In fact, more than 730,000 people left it to the last day in January this year — so you're far from alone. Unfortunately, leaving it to the last minute just makes the whole thing more stressful and prone to mistakes — plus you miss out on the chance to do a few clever things that can cut your tax bill. So there's plenty to be gained from starting now. It makes sense to put money aside for your tax bill as you go through the year, so you can pay your bill from this reserve. However, sometimes things don't go to plan, and you could end up with a shortfall. Regardless of when you file, you have until 31 January to pay, so you have months to put the extra cash aside. Read more: How to tell if you're rich A penalty is charged if the tax is not paid by the due date. HMRC also charges interest on unpaid tax. You can use the Budget Payment Plan service to set up weekly or monthly direct debit payments to spread the cost. This may not work for anyone with a particularly lumpy income, but can be useful for anyone who could do with some help managing payments. Most of what you do now will only affect your tax bill for the current tax year, but there's something known as "carry back", where you can do something today to cut the tax bill you're filing. You can use this if you're a higher or additional rate taxpayer who gives money to charity, and claims the extra gift aid through their tax return. You can make a donation now and include it in the tax return you're filing. This is particularly useful if your income is going to fall below a tax threshold this year, because you can claim gift aid in a year when you were paying a higher rate of tax. Another carry back rule applies if you've invested in an Enterprise Investment Scheme (EIS) in the current tax year, and you want to carry income tax relief of 30% to the previous year. Payments don't have to be in until January, but if HMRC owes you money, your refund will be processed now, so you should get it sooner rather than later. If you spent ages digging out details of interest payments, dividends or profits on share sales, consider consolidating to simplify things — bringing together things like savings and investments so they're easier to manage. Of course, none of this takes away from the fact that a tax return can be a fairly joyless experience. If you find yourself putting it off in the coming weeks, it's worth thinking whether you might want help from a professional to get it over the line. At this time of year, they're far less likely to be busy, so you can shop around for a cost-effective more: Who wears the financial trousers in your relationship? How to plan for retirement and track your pension pot income Why it's important to plan for retirement with your partnerSign in to access your portfolio
