Steer clear of finfluencers ahead of tax time: CPA | Australian Markets

Professional accounting physique, CPA Australia, has warned Australians towards consulting online ‘finfluencers’ for advice, data or tips about taxes posted on social media platforms ahead of the tip of financial 12 months.

CPA Australia mentioned there was a vital rise in finance influencers, significantly on social media platform TikTok, posting deceptive data or “outrageous claims” about work-related tax deductions this 12 months.

Some examples embrace:

• Claiming bills for a pet as a guard canine whereas working from home
• Claiming a luxurious designer purse as a work laptop computer bag
• Claiming hundreds of {dollars} in petrol prices with out receipts

Jenny Wong, CPA Australia’s Tax Lead, mentioned the circulation of this content material and its digestion by numerous Australians as “free expert advice” has raised vital considerations.

“In many cases the advice from these accounts is simply wrong. In other cases, the claims have an ounce of truth but would apply only to a very small group of workers,” she mentioned.

“For instance, some farmers might be able to declare bills associated to their sheep canines, however the concept a canine proprietor in a main metropolis can declare bills for a guard canine whereas they work from home is solely absurd.

“Similarly, many employees can declare the fee of shopping for a laptop computer bag. However, we’ve seen TikTok posts suggesting that taxpayers can take benefit of this to buy costly designer luggage which can be clearly not meant for carrying work laptops.

“Some finfluencers exaggerate the potential for sure claims to garner consideration and likes. This just isn’t severe advice. It must be ignored.

“Having a large following on TikTok doesn’t automatically make someone an expert on a particular subject, especially one as complex as the Australian tax system.”

Wong urged Australian taxpayers to be mindful of “following bad tax advice”, which might lead to lacking out on legit entitlements or financial penalties. She additionally cautioned towards utilizing different online instruments, akin to ChatGPT or OpenAI, for tax advice.

“The ATO uses data-driven profiles to identify which claims are realistic and which look like complete nonsense,” she mentioned.

“Work-related bills should be genuinely important to mean you can carry out your job correctly. Exaggerating a declare can have penalties. Making false tax claims might lead to hefty fines, a felony file and even imprisonment. Arguing that you simply took advice from a finance influencer on TikTok received’t cut it – your tax is your duty.

“Nothing can beat the sound advice of a professional tax agent. AI tools are only as good as the information you put into them. It may be tempting to ask AI bots for tips, but they are simply not able to compute the nuances of the Australian tax system or your specific circumstances.”