Tax agents fuelling non-compliance, ATO boss says

Over 900 audits have shown that tax agents are contributing to Australia’s individual tax gap through “carelessness, miscalculation and simple mistakes” according to ATO commissioner Chris Jordan.

This news was not well received by delegates at the IPA’s national congress on the Gold Coast, who told Mr Jordan tax agents in fact prevent clients from making claims they’re not entitled to.

Read the full article on Accountants Daily.

2 thoughts on “Tax agents fuelling non-compliance, ATO boss says

  • December 8, 2017 at 4:53 pm

    IF ATO was serious about tax compliance by small business they are not really looking seriously. All they have to do is look at small businesses that declare tax losses by entities year after year and in most cases are still supported by banks up to the point where the CEO resigns and declares the entity bankrupt and losers are mainly ATO(TAX avoidance), Employees and BANKS. I do not understand why the ATO does not tighten up the rule that a BUSINESS is run with a view to PROFIT. If the business is running at a higher and higher loss year after year there is no reason why ATO should not audit these entities. Quite possible ATO can help shut down SHAM ENTITIES fare more quickly if they were to tighten up this rule.
    The second issue is GST some entities keep claiming GST refunds year after year and also declare losses at the end of each financial year without the ATO either deliberately not investigating these entities OR have not channeled the right staff and resources towards this because it is too hard to ask questions to managers, CEO, and TAX AGENTS / BOOKKEEPERS the hard questions.
    I think ATO would do a great service to the community if it is able to PRESSURE THE BANKS to look at legitimated financial statements linked with past performance of businesses before lending these entities money and doing an AUDIT of entities that declares losses for more than three consecutive years to determine if these losses are simply paper losses OR genuine. If the losses are genuine then these entities should be shutdown to protect the community at large and if these are paper losses the there obvious manipulation of the tax law that is not correctly applied.

  • December 10, 2017 at 11:16 am

    I am interested in knowing that IPA members have a level playing field

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