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

  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 Co-founder Staff Member

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  3. bdang007

    bdang007 Member

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    Location:
    Sydney, NSW
    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 Co-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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    Location:
    Melbourne, VIC
    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