If individual works for themselves and obtains high income from cash flow. Records low income status with tax department to avoid child support and paying tax. Is it possible to then obtain loans, personal loan or home loans, on a low reported income to ATO? Or could the income be established by business balance books? Do banks have a minimum amount of money that people have to earn before they can be considered for loans?
SA Misreporting to ATO - Income Fraud?
- Thread starter Wondering
- Start date
Hi Wondering,
Every bank is different and they will look at a number of different factors. Your tax invoice is just one of the sources they use to assess your ability to repay a loan. Other factor: credit scores, income, profession, experience, age, other liabilities etc.
Also, I hope you are legally avoiding the tax and not tax evading!
Every bank is different and they will look at a number of different factors. Your tax invoice is just one of the sources they use to assess your ability to repay a loan. Other factor: credit scores, income, profession, experience, age, other liabilities etc.
Also, I hope you are legally avoiding the tax and not tax evading!
Hi
Thanks for the response.
I am the recipient of child support if the tax evader were doing the right thing. I have heard that banks provide loans to people without doing tax returns, it is done called low doc loans. Pity this individual gets to buy a house build asset, avoid tax and ultimately not support children. Not a lot of incentive to provide and pay tax.
Sorry to hear that you are the recipient of tax avoiders. Unfortunately, the tax system seems to work against some people. However, in relation to child support, they should consider more than just the tax return. Assets, company shares etc. should all be factored in when determining the amount of child support to pay.
Yes, I agree that there are little incentives to pay tax if you can avoid it.
Yes, I agree that there are little incentives to pay tax if you can avoid it.
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