I claimed a tax ‘deduction’ that my bank knows is a bit dodgy. Will they dob me in?

Dear Aunty B,

I recently did an extension to our building and put it down as repairs to claim an immediate deduction.

Now I want to go to the bank for an overdraft and I am worried that the bank will dob me into the tax office.

But my accountant says the banker is like a priest and won’t breach confidentiality. Is this right?

Shifty,
WA

Dear Shifty,

Look, I am no prude, but you’re nuts. For a start let’s stop being delusional. The extension wasn’t repairs and you know it. Secondly your accountant should not be going along with your delusions. Either change your accountant or insist on cleaning up your act.

Yes, the bank won’t dob you into the tax office. But the ATO has ways of checking your information and it is just not worth it.

Look, there are lots of advantages to having clean books. One as you note is you have above-board relations with the bank, which happily supports companies with clean books. Secondly, you have a far better chance of attracting equity if you ever need it. And thirdly when it comes to sell, there is only one set of books, not two.

So while your bank might keep your confidences, you, my friend, need to get a clear conscience.

Good luck,

Your Aunty B