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Tax and the legal name

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Tax and the legal name

Post by Ausk on Fri Jun 16, 2017 8:39 am

The legal name gets a lot of discussion these days in these forums which reminds me of this.

I listen to Know Your Rights Group online broddcasts each week. In recent times I have learnt this about tax.

Firstly, No tax authority in the western world provides a definition of income in their taxt act.

If we work for a hourly rate, wage or salary then we do not have to pay tax because their is no profit. Lets suppose we work for '400' $ or quid per week. There is no profit from this amount. Secondly, this money is compensation anyway and not income.

If I said I wanted $30per hour but they paid me $40 per hour then the $10 is profit and is taxable.

The way they turn $400 compensation into a $400 income is get us to complete the tax declaration form the employer gives us to complete when we start a job, and they want it in all capitals. This turns us into a corporation in the eyes of the ATO so therefore they now tax everything beyond the tax free threshold as profit.

To summarise how to deal with tax is:

Write them a letter, not email, and say that you are attempting to complete you annual tax return but in order for you to complete it they must provide you with an official definition of income which you so you can complete your return.

While your at it, ask for a detailed breakdown of much VAT you have paid in the year so that you can accurately assess the amount of tax you must pay or receive back, by way of refund.

If you must complete a tax declaration form before you can commence employment, do it in lower case letters.

Hope this helps







Ausk
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Not so newb

Posts : 75
Join date : 2017-06-03

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