Australian taxpayers are being urged to think carefully about where they are receiving their tax advice this year, with a rise in people turning to AI and social media for tips.
Complexities of the tax system
Ultimate Tax & Advisory Managing Director Bobby Serval said the Australian tax system was complex, and artificial intelligence wasn’t able to account for individual circumstances.
“The Australian tax system is complicated and only registered tax agents have the experience to truly understand your unique situation and how to apply the laws for your circumstances,” he said.
“We understand that AI is appealing, and it is great for so many things, but nothing as complicated as taxes.
“We’ve tried asking ChatGPT some basic tax questions and the responses didn’t pull correct information, and the information it did give was based on overseas tax laws.
“We’d hate to see any of our clients receive poor advice, when we could have used our years of experience to get them a better outcome.”
Influencer information can be misleading
Mr Serval said besides AI, there was also the risk of people who use social media thinking they can claim an item, simply because an influencer said it was fact.
This comes as CPA Australia said it had seen many examples of TikTok influencers making outrageous claims about potential work-related tax deductions. Claims included expenses for a pet as a guard dog while working from home, claiming luxury designer handbags as a work laptop bag and claiming thousands of dollars in fuel costs without needing receipts.
“Influencers can inadvertently give incorrect or misleading information online,” Mr Serval said.
“Not everything that is relevant to one person is relevant to another when it comes to tax and this is where receiving individual advice is so important.”
Wild work claims
The Australian Taxation Office (ATO) recently revealed some of the wilder work related expense tax claims people tried to claim last financial year.
The claims include a mechanic claiming an air fryer, microwave, two vacuum cleaners, a TV, gaming console and gaming accessories as work-related.
A truck driver tried to claim swimwear because it was hot where they stopped in transit and they wanted to go for a swim. A manager in the fashion industry tried to claim well over $10,000 in luxury-branded clothing and accessories to be well presented at work, and to attend events, dinners and functions.
“All of these claims were denied by the ATO, because they did not meet their criteria,” Mr Serval said.
“As registered tax agents it is our job to look at your circumstances, your employment and claims to work out what expenses were incurred as part of that employment. All claims need to pass the pub test and can’t be personal in nature.
“Every industry is different and tax agents stay up-to-date with the latest training to get you the best possible result by knowing the laws inside out.”
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