Anyone know how/if they actually check you have lived in your house for 6 months starting within the first 12 to be eligible for the FHOG & stamp duty concessions?
My friend got a letter just after he bought stating he must retain proof via 2 bills and was required to post it in.
Has anyone out there not bothered to send that information in?
Do the OSR follow this up actively or is it only raised if you end up under an ATO tax audit?
Do the ATO talk to the OSR?
My friend is in a situation where he wasnt able to move in within 12 months due to a work situation and couldnt afford not leave it unrented. He wont be claiming the loss as its negatively geared, but doesnt want to be asked to pay the stamp duty or FHOG back or it will break him.
Has anyone been through this?
Thanks
The OSR do random audits and target some people who have been 'dobbed' in. There are cases where the FHOG has been ordered to be repaid and extra stamp duty imposed.
Look at this article on a guy who had to pay it back http://www.mccourts.com.au/public/news/realestate/HTOct07.html#1
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Your friend is contemplating fraud.
The upside is that if he does voluntarily repay it, and doesn't occupy the house, he will be able to claim it for his next home.
surfermark wrote:Anyone know how/if they actually check you have lived in your house for 6 months starting within the first 12
Do the OSR follow this up activelyYes they do. They also use data matching – believe me, everybody from the ATO to the Electoral Office know where you're living these days.
Quote:Has anyone been through this?Not me, but some 3500 people in NSW alone have been forced to repay the money and as many as 20+ prosecuted.
http://www.news.com.au/business/story/0,23636,22653771-31037,00.htmlCheers,
F. [cowboy2]Does OSR only check bills and bank statements? Do they interview neighbours or follow the first home buyers home…??? If not I think it would be fairly easy to get away by just providing bills and statements….
Eventually they can catch up and data-match 100% of the population if they want to. It's only a database query.
May not happen this year, not next year not year after, but could happen on 4th or 5th year… By then you also need to repay the interest.
A lot more incentive to audit people receiving grants in 2008/2009 due to higher payouts. I think.
Tell your friend not to be worried. He's only likely to be caught out if there are any of the following:
Rental bond
Electricty/gas/phone accounts for that address in his tenants' names or elsewhere in his name
Electoral records as above
RTA records as above
Tax returns showing his address/his tenants' addresses
Bank records give another address
His employer's records give another address
His insurance shows it is an investment propertyA tenant/friend/exgirlfriend/work colleague blows the whistle
or the OSR does a spot check
One of my clients recently got audited by the OSR. What they do is send you a letter, initially, and ask you to provide proof that you were living in the property. If they are satisfied they probably won't take the matter further, but they could do so if suspicious about something -especially if someone has made some allegations.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
In NSW if you are unable to move into your property within the first 12 months because you have work commitments preventing it, you can ask the OSR for an extension which can be granted if they see fit. But this would need to be done prior to the 12 months expiring and ideally as early as possible. Best idea is to ring the OSR in your state and ask the question. I woudn't try to scam the OSR you would be stunned how easy it is to make a mistake as well as having to ensure you stay friendly with everybody you know.
Hydra
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