For most people, paying taxes is a great source of frustration and disappointment. Seeing a huge amount of your earnings wiped out of your pockets could be one of the most painful sights for almost all taxpayers. Worse, if you fail to declare and pay the right tax figures, you might end up having a criminal record, getting fined or jailed for years.
Taxes, for many people, are a common deduction of their income with a fixed rate. Because of the fear of getting penalties and jail time, they just pay the taxes without questioning or making any attempt to lower them. But for the financially literate, this regular deduction in your income can be reduced considerably. Using the expertise of many professionals, including tax accountants, they can do certain completely legal activities that cut down their regular financial obligations to the government. Here are some few tips to slash down your taxes:
Keep good tax records – Make sure you keep your receipts in every purchase you make to be authorised to tax deductions. Australian Taxation Office states that each taxpayer is entitled work-related deduction as long as the work-related expenses are not reimbursed and are proven by receipts other valid business records.
Donate to charity – Sometimes, doing good to others can repay you through tax deductions. Every donation of over $2 to registered charitable institutions can reduce the amount of taxes you should pay. Just make sure you keep the receipt of your act of charity.
Make investments – Some expenses that for investment purposes can be tax deductible. Just ask the help of your tax accountants to make sure you get deductions.
Seek help from professionals – Taxation is complicated for ordinary people. Even the great scientist Albert Einstein was puzzled by the computation of income tax. So if you are a business owner and even salaried worker who want to know how to trim down taxes, you need help and advice from any tax accountant, especially those who are affiliated with competent accounting firms such as Fusion Financial Group.
The tax accountant Brisbane has a complete team that are well-versed in planning and minimisation. Moreover, it has a complete range of accounting and business consulting services. So if you need advice in strategic business planning, marketing consultancy, business valuations, budgeting and forecasting, risk management and more, they are the right people to call.