Saving on tax

Discussion in 'Accounting & Tax' started by bdang007, 5th Jul, 2008.

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  1. bdang007

    bdang007 Member

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    Hello all,
    One of my friend told me about this 'scheme'. He created an ABN and basically wrote off just about all his expenses, eventhough he doesn't really have a legitimate business. Now, I was wondering how legal is this? It doesn't seem very legal to me. Can anyone give some advice on this? Thanks.
     
  2. Simon Hampel

    Simon Hampel Founder Staff Member

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  3. bdang007

    bdang007 Member

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    Thanks for the reply Sim. Yeah he probably would be in big trouble, although he's not taxed all that much.
    I've just read the fact sheet and aw this line:
    - have an assessable income from the activity of at least $20,000

    So if the business had an assessable income of $20,000 then the business is able to have non-commercial losses. The question is, can I (as an individual) pay MY business $20,000 so that my business will be able to claim non-commercial losses? hehe
     
  4. MattR

    MattR Well-Known Member

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    Part IVA....will bight your head off!
     
  5. bdang007

    bdang007 Member

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    Are they really that vicious?
     
  6. Simon Hampel

    Simon Hampel Founder Staff Member

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    Just so long as they don't bight my isthmus off :eek: :D
     
  7. Rob G

    Rob G Well-Known Member

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    When you sign a tax return you are making a statutory declaration.

    You cannot claim deductions for expenses you have not incurred.

    Cheers,

    Rob
     
  8. MattR

    MattR Well-Known Member

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    I had to get my dictionary out...:confused:

    Bite me :D