A LEADING tax expert has urged Aussies not to be “bullied” by the Australian Taxation Office (ATO) this year.

H&R Block’s director of tax communications Mark Chapman, who also previously served as a senior director at the ATO for seven years, said the body would now be particularly focused on cracking down on the “systemic abuse” of work expenses and dodgy claims and cryptocurrency.

According to tax officials, millions of us are making questionable claims — and it’s costing the budget more than $2.5 billion each year.

But Mr Chapman said the ATO’s own guidelines were often vague and that workers should not be afraid to claim what they were owed.

• PARENTS OFFER $4.5K TO GIVE KIDS THE ‘SEX TALK’

• THE AUSSIE CARS BEING RECALLED

• ATO CRACKS DOWN ON ‘OTHER’ WORK-RELATED DEDUCTIONS

“The ATO has flagged that in its view, there’s a lot of rorting going on with work-related deductions but we’re slightly sceptical about some things especially phone and internet claims because the way people work is actually changing and as a result the deductions you can claim are also changing,” he said.

“There’s an increase in the use of mobile phones as part of work and so there’s also been an increase in the number of tax claims relating to mobile phones.

“We’re not entirely convinced people are rorting — we think the way people work is changing.”

Mr Chapman said following three “golden rules” would save Aussies from falling foul of the tax office.

“Make sure anything you claim actually relates to your job, make sure you have the records to substantiate the claim and make sure you have actually spent the money and haven’t been reimbursed by your employer,” he said.

“Don’t be afraid to claim things you are entitled to. Don’t be bullied by the ATO saying they are looking into phone and internet and work-related clothing claims.

“You shouldn’t think you are rorting the system if you are claiming something you are entitled to claim.”

Mr Chapman recommended keeping a diary of work-related phone and internet use with dates and times and highlighting work-related calls on itemised phone bills.

“Working out the proportion is difficult to get exactly right so there needs to be some sort of recognition from the ATO that it is difficult to pinpoint the exact figure,” he said.

Earlier this month, assistant commissioner Kath Anderson said the ATO would be paying close attention to claims for “other” work-related expenses this year, as last year 6.7 million taxpayers claimed a record $7.9 billion in deductions in that category.

Mr Chapman said while everyday office attire such as suits could not be claimed as work-related clothing, certain items like overalls and safety equipment might be.

He said people who worked outside may also be entitled to claim items like sunscreen, hats and even sunglasses.

The Australianrevealed today the ATO will use new anti-money laundering legislation to crack down on tax cheating bitcoin investors.

From next month, the ATO will use compulsory 100-point identification checks which will allow the office to implement data-matching techniques to investigate cryptocurrency investors.

Mr Chapman said it was a “murky area”.

“A lot of people simply aren’t aware of their tax obligations — cryptocurrency is a wild west area with regards to tax — but it’s essential to be aware that there are potential tax obligations surrounding capital gains and income tax, depending on if you are investing or trading,” he said.

“If you are planning to get involved with cryptocurrency, that’s an area where you should get professional advice because the ATO’s guidelines are very complex and you don’t want to fall foul of the tax man.”

alexis.carey@news.com.au