News | August 2009 | Declaring Interest and Dividends

The importance of declaring interest and dividends

A frequently asked question that Qaccounts encounters when they are completing an Income Tax Returns: “Do I have to declare interest and dividends even if the amounts are less than $5.00?”

The short answer to this question is: Yes

Interest and dividends are assessable income and everyone must declare all income from all sources. By omitting even small amounts of interest and dividend income you are placing yourself in a situation where you can be penalised by the Australian Taxation Office (ATO).

The ATO also has the legal power to find out how much interest and dividends have been paid to you. The ATO also carries out data matching procedures to ensure that all assessable income is being declared.

If you do not declare your interest the ATO will eventually find out and will take steps to recover any tax that is owed on the extra income. It is not worth the possibility of receiving a penalty from the Australian Taxation Office. Make sure that when you complete your tax return declare even the smallest amounts of interest and dividend income.

To ensure that you are declaring the right amounts of income ask Qaccounts for an assessment when we prepare your Income Tax Return.

The information provided in this article should not be taken/understood/or misconstrued as taxation advice. The application of taxation advice varies from person to person. You should seek a specific professional assessment of your circumstances from a qualified and registered tax agent.

Qubek Pty Ltd is a registered tax agent.

24 August 2009