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Following is one of the many media releases issued by the NTAA in the past month:

ATO tax return "hit list"

Employees will soon be receiving group certificates and lodging their 2006 income tax returns hoping for a big refund, but they should be aware that the Tax Office is ready to pounce if they leave income out or claim too many deductions, Darren Wynen of the NTAA warned today.

Specifically, the Tax Office has said that it is targeting:

• Employee shares and share options;
• Share transactions – The Tax Office is using its data matching to pick-up taxpayers not including all their dividend income;
• Rental properties – The Tax Office is focusing activities on people who understate their income or inflate their rental property deductions; and
• Work-related expenses – The Tax Office is focusing attention on large claims for work-related expenses, especially if taxpayers have not kept supporting receipts and invoices etc.

"The Tax Office is concerned about a blow-out in rental property deductions because of the number of new entrants to the investment property market," says Darren Wynen, Taxation Manager with the National Tax and Accountants’ Association. "Rental property owners can expect very close scrutiny on their travel expenses, initial repairs and renovations to rental properties."

"The Tax Office is also very concerned about work-related expenses. Hot spots on the Tax Office’s hit list include, home office expenses, mobile phone calls, internet usage, and travel expenses. Also, in some industries, such as the hospitality industry, clothing, laundry expenses and self education expenses will receive close scrutiny."