Finfluencers: bad tax advice could cost you thousands
They’re advising from your insta and TikTok feeds, they’ve got huge followings, they speak with conviction - financial influencers or ‘finfluencers’. Please heed our caution, taking advice from unqualified sources can have serious consequences. We’re seeing examples of misleading claims, exaggerated deductions and outright misinformation. Relying on this advice could not only leave you out of pocket but also expose you to ATO penalties, fines or in the worst case scenario - prosecution.
What’s the problem?
Many finfluencers make money by promoting financial products on behalf of companies, which means that they don’t necessarily have your best interests in mind when sharing information or insights. Finfluencers aren’t always qualified to provide advice on tax or financial products. You just can’t expect to receive solid, reliable or tailored guidance. Unfortunately, we’re seeing some influences share tax hacks that are either completely false or apply only in extremely limited situations.
The ATO and some of the accounting professional bodies have sounded the alarm on some recent false claims, including:
Claiming your pet as a work related guard dog
Writing off luxury handbags as laptop bags
Deducting fuel costs without any documentation
Trying to claim swimwear as a work uniform
These kinds of suggestions might sound plausible but following them could get you into serious trouble. The ATO uses sophisticated data matching tools to detect suspicious or inflated claims. If your deductions don’t meet the legal criteria, this could trigger an audit and if mistakes are found, the consequences can include:
An increased tax liability
Interest charges
Fines
A criminal record and in the most serious cases, imprisonment
Here’s how to stay safe and tax smart:
If it sounds too good to be true, it probably is. Dodgy deduction tips on social media are best ignored, at least until they can be verified.
Stick to trusted sources. For official tax guidance, visit ato.gov.au.
Don’t risk your business or personal reputation for a quick deduction.
If you aren’t sure, please reach out to us and we can help you stay compliant, no filters or hashtags!
Warm regards,
___
Corinne Kirk | EGU Accounting and Taxation
Partner and Senior Accountant
1300 102 542 | 0405 106 401
corinne@egu.au | www.egu.au
GPO Box 1598 Brisbane QLD 4001
This is general advice and has been prepared without considering your objectives, financial situation, or needs. You should therefore consider the appropriateness of the advice, in light of your own objectives, financial situation, or needs, before following this advice. If the advice relates to the acquisition, or possible acquisition of a particular financial product, you should obtain a copy of, and consider, the Product Disclosure Statement (PDS) for that product before making any decision.