Getting paid commissions from a friend - how to legally avoid reporting it for tax?

Question

I have a friend who wants me to write up his reports for him (just data entry really) and he will pay me a percentage of whatever he charges his client. I am already working full time as a payroll employee for another company. I would like to avoid having to register this under an ABN (i cant anyway because i cant contract more than 80% of my work to one business) and he doesnt want to do a payroll thing. Is there a way he can pay this to me just as a regular money transfer without it being related to reportable income (such as if he paid me my commission from his personal bank account or in cash something similar?) Is this viable and legal? Also how can he write off the money from his business accounts if his client paid directly to his business account via bank transfer or cheque instead of cash - could he register it under withdrawings or as a reimbursement to me somehow (to avoid the amount being taxed). Any help would be great. Thanks!

Answer 1

have him pay you in cash, you can always deny anything, just don't bank more than you make on your regular check.

Answer 2

There is a site where u can find genuine Data Entry jobs/Work at Home jobs without any up front costs or any registration fee. Work at home data entry Resources. Guides on identifying Work at home Job Scams and a lot more.

Visit here:

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:)

Answer 3

He can pay you in cash and write it off on his book as miscellaneous expensess. Also he could transfer money from his personal account (not buisness) and then transfer it to your account.

Answer 4

The ATO will probably soon be demanding your personal details and IP address from Yahoo Answers, who will be obliged under law to disclose them. That's just one of the many methods of how the ATO catches tax evaders.

Tax evasion is highly illegal and antisocial - people pay severe penalties and go to gaol for it. You should be more careful of what you disclose about yourself online. Along with any fools who encourage you. You can be sure that your silly employer will maintain a nice audit trail straight to you when the ATO are auditing his dodgy books. The ATO can be very cluey, especially with all their high tech data matching technology and dob-in-a-tax-evader systems (got any enemies?).

Don't be a fool. Report your income in your tax return. No matter how he pays you - any income you earn is assessable. He can't claim a deduction for your fees unless you provide him with a invoice that has your ABN on it anyway. If you don't invoice him with an ABN he must withhold 46.5% tax. You don't have to register your ABN for GST when you're turning over less that $75000 a year so don't add 10% GST on your invoice.

You CAN and MUST get an ABN if you are not providing an employee TFN declaration. It doesn't matter if your income is more than 80% from one source - all it means is you declare it under Personal Services Income instead of Net Income from Business, and your deductions are limited to those which are allowable for ordinary employees. That's all.

Answer 5

why shouldn't you have to pay tax, we'd get more tax cuts if everybody declared their correct incomes and paid tax on it.

had to get that out my system.

on the ato's website you can download a factsheet called something like are you carrying on a business. if you can honestly say that this is a hobby and that you are not intending to run a business and with the purpose of making a profit than it doesn't matter if it goes through the bank accounts because the money you make from a hobby is not assessable on your tax return.  It will also still remain a business expense to your friend and they will be able to claim the deduction legit.