Every Australian citizen has certain tax obligations which differ depending on their circumstances. However, the vast majority of the workforce will be liable to pay some form of tax on their yearly income to the government. Depending on the severity of the offence, failure to file and pay the correct taxes could result in you facing prosecution, large fines or even time in prison. The only way to avoid this is to make sure that your annual tax return properly reflects your circumstances and is filed on time. When the time arrives, you will have a choice. You can choose to either file a self-assessment of the tax you owe based on your income and earnings or you can hire a tax accountant to do this on your behalf. While there is nothing wrong with completing a self-assessment of your tax return, there are some occasions when it is best to hire a professional.
If you have undergone a life changing event
Life changing events such as marriage, divorce or investing in property or moving abroad can have a significant impact on your tax status. If your life has changed in a significant way since you last filed your taxes, it may be worth while speaking with a qualified tax accountant. A tax accountant will be able to advise you on how the changes to your life may impact your tax liability and will also be able to ensure that you do not pay too much or too little tax as a result.
If you have not filed a tax return for some time
If you have been earning money but failing to declare it on a tax return in the years previously, it's always wise to consult a tax accountant. Although you may face a penalty in the form of a fine for filing your returns late, the taxman will generally be much more lenient if you approach them and offer to sort out your tax affairs rather than them having to chase you. A tax accountant will be able to establish your exact earnings for previous years and will ensure that any late tax returns are properly completed. They may also be able to negotiate with the tax authorities on your behalf in order to reduce any penalty you are subject to.
If you would like further advice about how an accountant can help you, you should contact a tax accountancy firm today.