30 May 14 On benchmarking
MEMBER 62 writes:
“Got my Benchmarking letter the other day.
Quite a few listed have Total Expenses being high 90% of Business Income. I hope the Tax Officers already understand that many clients purposely pay wages to themselves (with tax withheld) using up the profit, thus net profit minimal. That taxpayers are not understating income, rather expensing the profit as wages to themselves. All TIA members in the ATO please remember, rather than pestering us.”