Letter from the Tax Office; Want to see my cars Log book etc

[Mondie]

Somehow l knew this day would eventually come.

The ATO have sent me a letter requesting my original car logbook and proof of onwership be sent with this years tax return if l intend making a claim for work related car expenses using the % of business use method. l am not concerned, everything l have claimed has been fair and by the book with the exception of my fuel claim thats probably pushing the limits a little. _

l was wondering if anyone else has recieved such a letter or has in the past? The thing l dont understand is why they need proof of ownership. l thought with the big brother network that exists these days the ATO could press a few keys and tap straight into VicRoads database and know what cars l have had when, kms travelled at purchase and disposal etc etc.

Interested to hear others experiences. Who else got a letter and who has had the unfortnate experience of an audit over car deductions in the past?

Cheers Mondie

[GRNKPR]

dont sh1t yourself take your time and be real vaige wih them like i do .There is a guy i know who has built several cars thanks to ATO keep calm it will all work out for the good.They pick onthe small guy as they have with you and got the reaction they wanted for you to go into a stste fo shock and bow and scrape to them i say no tax is good tax and where else would you like to live than in VIC the double tax state

Good Luck

[Mondie]

Originally Posted by GRNKPR

dont sh1t yourself take your time and be real vaige wih them like i do .There is a guy i know who has built several cars thanks to ATO keep calm it will all work out for the good.They pick onthe small guy as they have with you and got the reaction they wanted for you to go into a stste fo shock and bow and scrape to them i say no tax is good tax and where else would you like to live than in VIC the double tax state

Good Luck

Not too bothered, l have all the records etc.

l mainly posted as l am Interested to hear about others experiences since there is probably quite a few people here that have their cars on some sort of business use arrangement.

Cheers

[Dodge]

u only need to log the cars use for 6 months, best way is to log any long drives ect, im claiming hair cuts this year, well it grows in company time

[MrLandau]

I am a contractor and use 4 cars a year (5000kms each). So long as you own the vehicles throughout the entire financial year and can substantiate your claim you can run as many as you want
Shane

[Full Noise]

Hmmmm, the Tax Office. My favourite bunch of deadwood Government numpties. Isn’t it interesting Mondie, how they will go to so much trouble to check your vehicle logbook? When I rang them yesterday to enquire about a scumbag ex employer who refuses to issue me with a group certificate, their response was “I’m very sorry sir, there’s nothing we can do as there are no provisions in the Act to deal with this”. These p#&*#k$ will kick your front door down if they suspect you of tax evasion, but scumbag employers, well little Johnny Howard wants to protect them, you know, so we can all have job security, higher wages and a better way of life. : :

Cheers, Danny :

[jonbays]

just make sure you buy one of those log books from the newsagent every year and fill it in for the first 12 weeks of every year.

It takes a bit of time a few pens and pencils and a calulator but its not too hard.

Just trying to keep us little people honest.

[Nic]

I had to provide details of my interest earned, so a slightly different situation. I ended up mailing them registered, person to person mail, about 100 pages of documentation. Worked a treat, no medicare levy surcharge to pay! I say the way to go is to bombard them with information, so much so that it's not worth their time to scrutinise it all. My friend's an accountant and said i was the first person he knew who'd got out of paying a fine after the letter had been issued!!

[Charliewool]

Originally Posted by GRNKPR

dont sh1t yourself take your time and be real vaige wih them like i do .There is a guy i know who has built several cars thanks to ATO keep calm it will all work out for the good.They pick onthe small guy as they have with you and got the reaction they wanted for you to go into a stste fo shock and bow and scrape to them i say no tax is good tax and where else would you like to live than in VIC the double tax state

Good Luck

What a load of crap!....

[JADED6]

I owe tax this year. Somehow.
Sucks. So no tax refund for me.
And that damn medicare levi.... there goes $700 odd..

[Bucknaked]

Originally Posted by charliewool

What a load of crap!....

: Your right. I've worked for the ATO and I now work for another department where the stories are taller and the ego's are bigger. You just have to go to the pub on a Friday night and listen to the p*ss heads who brag how they told the government where to stick it. You see the same guys in an interview, they are as weak as. :hihi:

You'll be right Mondie. As long as you can substantiate your claims, you have nothing to worry about. Good luck.

[Dodge]

my bill this month is 10,900 it should pay for some more travel raught or pollotition to sit on his/her lazy good for nuth a$$ for a week or so.

[kaytonk]

sts makes life a lot easier, dont even have to do the 12 week log book (but can if you want to). of course, it depends how much your business makes. have had a few customers asked for proof of ownership, generally just to prove whether the car is owned by a proprietor or the company itself.

[Deadman]

Originally Posted by Dodge

u only need to log the cars use for 6 months

I believe you'll find you only need to keep a log book for 3 months (12 Weeks actually) and the same log book can be used over multiple (5) years (less sure about the second point and specifics) ...

So 12 Weeks makes it pretty easy to show lots of work use :hihi:

source: http://www.ato.gov.au/individuals/co...1/002&st=&cy=1

correct me if i am wrong... :

[kaytonk]

your quite right. however they do suggest you update the log book, mainly because when you start a business you use your own car, and have more private use, as time progresses and the business builds, you use the car more and more for business

[Dave_au]

Sounds like the ATO is on a fact finding mission, somehow you've raised a red flag on their system, now their getting curious.

[Dave_au]

Originally Posted by Full Noise

When I rang them yesterday to enquire about a scumbag ex employer who refuses to issue me with a group certificate, their response was....

Well anyway Danny, sounds like your ex employer may not have witheld your PAYG instalment that their supposed to, an amount that should have been remitted during their BAS payments etc.

As per the ATO:
The following are some signs that a person or business may be evading tax:
not being registered for GST, despite clearly exceeding the threshold
not charging GST at the correct rate
not wanting to issue a receipt
providing false invoices
using a false business name, address, Australian business number (ABN) or tax file number (TFN)
keeping two sets of accounts, and
not providing staff with payment summaries (previously known as group certificates).

Maybe you'll just have to ring up the ATO's dob in line (1800 060 062 - 8am till 6pm), your ex employer may need a tax audit to assist him with his compliance with the law.

[Rodp]

Originally Posted by Ford_Falcon_XR6

I believe you'll find you only need to keep a log book for 3 months (12 Weeks actually) and the same log book can be used over multiple (5) years (less sure about the second point and specifics) ...

So 12 Weeks makes it pretty easy to show lots of work use :hihi:

source: http://www.ato.gov.au/individuals/co...1/002&st=&cy=1

correct me if i am wrong... :

I think the addendum is that if your driving habits change over that period then you need to start another 3 month period. That's how my accountant explained it to me. I claim 85% business use.

For instance, I do a lot of travel for my work, if I was to change roles and did a lot less travel I would have to do another log book that year.

I think this is my 5th year since my last log book so I'll have to make sure I pull the finger out and get a new one.

[uglybob]

Rodp - correct! if you have a substantial change in circumstances, then you need to redo your log book. a consistant 12 week logbook is valid for 5 years - so make sure you keep them up to date!