It is a legal requirement that you keep records relating to your 2014 Tax Return. That is why it is so important to make sure you have a practical record keeping system in place and take advantage of Refund Express’s online document storage for your Return. By law, the ATO requires you to keep you Tax Return records:
- for five years after they are prepared, obtained or the transactions completed (whichever occurs later); and
- in English, or in a form that the ATO can access and understand in order to determine your tax liability.
According to the ATO website, you should “keep records for a longer period if you use information from those records in a later tax return. The records and receipt should be kept until the end of any period of review for that later return. Records relating to assets for capital gains tax purposes may also need to be kept for a longer period.”
You can issue and store records in either electronic or paper form. Once a record keeping system has been set up, it should be a simple process to update records daily. Utilising the document management on Refund Express mean you don’t have to worry about holding onto the receipts once they have been uploaded as our system will store them for you.
“There are penalties for not maintaining the required records and for not keeping them for five years” warns the ATO website. “Keeping good records will help you avoid these penalties.”
Other reasons for keeping good records
Some other reasons are cited on the ATO website, such as:
- It makes it easier to complete your and prepare your annual income tax return.
- Good records will demonstrate your financial position to banks and other lenders.
- Well kept records will show the basis for any amendments you need to make to activity statements or tax returns you have already lodged.
- Good record keeping will mean that you can maximise your Refund every year.
Receipt management and storage is too easy with Refund Express and our easy to use Online Tax Return system.