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Re: List of Mandatory Labels for new Deductions Schedule

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Devotee

Views 949

Replies 6

Hi,

 

I'm looking to get a hold of a list of requirements / mandatory labels for the new deductions schedule that tax agents are required to lodge with 2019 individual tax returns please.

 

I'm aware the ATO are looking for Granular Data, but what is actually mandatory? Is the ATO looking for car rego details? Do we need to list the name of their course of study? etc. I've tried ATO website, the developers website, and Google - but can't find an actual schedule (there has to be one doesn't there... how else would software companies know what to mark as mandatory?)

 

Thanks in advance.

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Best answer

ATO Certified

Community Support

Replies 1

Hi @MCA_Accountants, @ariellead and @macfanboy,

 

Thanks for your questions about Granular data. We've checked information with a specialist area that have provided the following formation.

 

The new granular design is about enabling the capture of the deductions information most agents already record in their software when preparing a client’s individual tax return.
 
You don’t need to complete a new schedule. Your software will create the schedule by collating the deduction information you’ve already input as part of the return preparation process and transmit it to us with lodgment of the return.
 
We’re deliberately not being prescriptive about what you should write. Entries should describe each deduction item being claimed (for labels D1 – D15).
 
The provision to capture these details has been in place for self-prepared returns since the introduction of myTax. This change brings the agent lodged individual return into alignment with this experience.

 

Hope this helps, JodieH.

 

6 REPLIES 6
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Taxicorn

Replies 1

I have been informed to put more information in the tax return.

eg, instead of D5 Phone $117, put D5 Mobile Phone $45pm x 12m / 52 weeks x 45 weeks x 25% use.

 

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Devotee

Replies 0

Hi macfanboy,

 

Yes, we've been told to add more info also, but what does "more info" mean? The ATO have been amazingly lacking in telling us exactly what their requirements are. For the ATO to require it, it must be a law, or an official guideline, or something - or else it's just someone at the ATO making things up on the fly (which I know isn't the case).

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Champion

Replies 1

Hi @MCA_Accountants 

 

The instructions for 2019 Tax returns can be found here; not sure if it contains the new information that you require - but worth a look maybe?

You can also search the ATO database here for other instructions for forms etc. 

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Devotee

Replies 0

Hi Ariellead,

 

Thanks for replying. Tax agents (and only tax agents) have to lodge an additional deductoins schedule which is where all of this additional info is reported - problem is, this deductions schedule isn't mentioned in those instructions (as those instructions are the general ones for the public). There is no guidance for this deductions schedule that I can find anywhere, including in the ATO database of instructions and forms.

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Best answer

ATO Certified

Community Support

Replies 1

Hi @MCA_Accountants, @ariellead and @macfanboy,

 

Thanks for your questions about Granular data. We've checked information with a specialist area that have provided the following formation.

 

The new granular design is about enabling the capture of the deductions information most agents already record in their software when preparing a client’s individual tax return.
 
You don’t need to complete a new schedule. Your software will create the schedule by collating the deduction information you’ve already input as part of the return preparation process and transmit it to us with lodgment of the return.
 
We’re deliberately not being prescriptive about what you should write. Entries should describe each deduction item being claimed (for labels D1 – D15).
 
The provision to capture these details has been in place for self-prepared returns since the introduction of myTax. This change brings the agent lodged individual return into alignment with this experience.

 

Hope this helps, JodieH.

 

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Devotee

Replies 0

Hi JodieH,

 

Thanks for taking the time to reply.

 

I guess what I'm trying to ascertain is how much info is the ATO expecting us to provide? I appreciate that the ATO isn't being prescriptive, but on the flip side the ATO are using this info to help pick audit targets - so a little prescribing as to what is expected wouldn't be unreasonable in my opinion.

 

Is breaking down D5 into "Home office $60" "Stationary $55" etc enough, or does the ATO want to see the number of hours per week of home office (or % applied if that method is used) as an example.

 

As a note for the higher ups. Many agents are skeptical as to why we haven't been provided more guidance on this (and I know clients are) which only erodes trust between our profession and the ATO. The ATO obviously think we are hiding things (and probably with good reason given that stats tell us 2/3rds of returns contain errors), and tax agents don't like providing too much info because the ATO misuse it and then get locked info a position they cannot change (for example I know of a taxpayer audited because travel records indicated they were out of the country for 2 years, except the ATO was matching incorrect info with the wrong person and the taxpayer was in the country for all but 2 weeks. The audit went ahead anyway because once started the ATO officer couldn't stop it).

 

Guidance as to what the ATO wants and what will help it maintain the integrity of the tax system is sorely needed and that kind of info shows that the ATO is willing to work with, not against, tax agents - an opportunity missed here in my opinion.