Tax Alert: Is it too good to be true?

Each year the ATO sees incidents where individuals and businesses become victims of dodgy tax schemes.

When tax planning arrangements go beyond what was intended by the law, they become a tax avoidance schemes and can put your savings at risk.

How can you tell a legitimate scheme from something dodgy? There are many things to look out for, but as a starting point, you should be wary of promoters who:

• claim their product is zero-risk;

• discourage you from obtaining independent advice;

• do not have a product disclosure statement;

• recommend changing private expenses into business expenses so they can be claimed against income;

• inflate or artificially create deductions; or

• suggest arrangements that involve deferring or not declaring income.

If you encounter someone promoting a tax scheme you're unsure about, give us a call. Our team at OakWealth is always happy to help you work through it.