The Certified Practicing Accountant (CPA) Australia has issued a warning regarding misleading financial information being disseminated by social media influencers, particularly in the lead-up to the tax season.

The period for tax returns in Australia spans from July to October each year, during which many individuals prepare their financial statements for submission.

CPA Australia highlighted that certain influencers have asserted incorrect claims about tax deductions, including the controversial assertion that pet dogs can be classified as legitimate work-related expenses.

While acknowledging that some rural workers might be able to claim expenses related to working dogs, CPA Australia emphasized that such claims are generally inapplicable to urban residents.

Common examples of false claims identified include:
- Deductions for pets marketed as guard dogs for those working from home.

- Luxury handbags falsely categorized as work-related laptop bags.

- Inflated fuel cost claims made without proper receipts.

Jenny Wong, the tax lead at CPA Australia, expressed concern that followers of these influencers might mistakenly view them as reliable sources of expert financial advice.

Wong noted that while some claims may contain a kernel of truth, they often pertain only to a limited number of workers and not the general public.

She cautioned that advice from influencers, particularly those with large social media followings, should not be casually accepted without scrutiny.

The Australian Taxation Office (ATO) has also issued its own warnings regarding inaccurate tax claims.

Assistant Commissioner Rob Thomson remarked that attempts to submit exaggerated deductions are unacceptable.

He clarified that all tax deductions must conform to established criteria and highlighted that personal expenses, such as commuting or childcare costs, are not eligible for deductions.

Thomson stated, "If a deduction doesn’t pass the 'pub test', it’s highly unlikely your claim would meet the ATO’s strict criteria." He reiterated that engaging in the submission of dubious claims could lead to significant consequences, including fines, criminal records, or imprisonment.

Wong cautioned further that misusing tax advice could lead individuals to miss out on legitimate claims or face severe penalties.

The ATO employs data-driven profiling to identify claims that appear realistic as opposed to those that seem excessively inflated.

She warned that incorrect claims can have serious repercussions, underscoring the necessity for taxpayers to ensure their claims are genuinely linked to their employment responsibilities.