ATO goes after $29.8 million owed by tax advisers

The Australian Taxation Office (ATO) is pursuing tax advisers for high-worth clients as part of a campaign to clean up tardy lodgement practices.

ATO officers have identified $29.8 million in liabilities from engagements with tax advisers who have failed to keep their affairs in order.

The ATO has received $15.2 million of that amount, with the balance subject to payment plans.

Ongoing monitoring of tardy agents will ensure partners in firms do the right thing.

An ATO update sent yesterday warned tax practitioners who provide advice to privately owned and wealthy groups that their own personal tax obligations must be up to date.

“Our Tax Avoidance Taskforce Adviser Strategy aims to help strengthen the integrity of the tax and super systems by recognising the important role advisers have in supporting businesses,” the ATO says.

“Taxpayers take their lead from their advisers. Therefore, it’s critical that advisers ensure their own tax and super affairs are in order.”

The tax office said it wants to ensure adviser firms and individual advisers are properly set up to meet their tax and super obligations.

There is another reason tax agents have been reminded to keep themselves tidy — their own ticket to practice – their tax agent registration — could be under threat if they fail to do the right thing.

“It’s very important for all privately owned and wealthy group advisers to keep their personal tax obligations up to date, in line with community expectations and taxation laws.

“In addition, for advisers who are registered with the Tax Practitioners Board (TPB), it’s a condition of their ongoing registration that they have compliant personal tax affairs.”

The ATO’s caution to tax advisers at the top end of town comes as the TPB continues its investigation into PwC Australia. There are nine active investigations into the matted.

That investigation relates to the breach of confidentiality agreements in government policy consultation forums, which resulted in former PwC partner Peter Collins and his old firm absorbing penalties from the TPB.

This article was first published by The Mandarin.