Archived News - 2005
2005-08-25
Low Document Loan Alert
The ATO has just announced that it has uncovered widespread tax avoidance with businesses using low document loans.
Low document loans are popular largely because you can get access to finance with minimal substantiation of your income and assets in return for paying a higher rate of interest.
Regardless of the pros and cons of these loans, you should be aware that the ATO is now actively checking borrowers' information with their tax return lodgment records.
WHAT DO I HAVE TO DO?
If you have a low document loan, make sure you have lodged all your tax returns and that your income and other information in your returns matches what's disclosed in the loan documents.