Agents engaging in bad behaviour are in the sights of the ATO
Courier Mail
Tax Practitioners Board chair Ian Klug will use an address to the Tax Institute of Australia convention in Hobart today to call for the industry to work
together to stop black economy behaviour.
**Tax agents probed over $1b in dodgy work claims
The Australian Financial Review
The Tax Practitioners Board is aggressively targeting 2000
accountants who overclaimed more than $1 billion of work expenses for
their clients last year, TPB chairman Ian Klug said.
In a stinging address to the Tax Institute, Mr Klug, who took over as Board chairman in January, said 1600 “high risk” tax agents had filed alarmingly high work expenses claims for 2.9 million clients in 2018, with the focus now widened to 2000 agents.
Clients
were left exposed by the aggressive claims—like the agent who claimed
$40 million in rental losses for clients who could not read English,
some of them refugees, most of whom never owned a rental property or
even knew what the agent was claiming for them, but who still were left
with tax penalties.
***TPB targets high risk practitioners
Money Management - Ian Klug
****TPB eyes 2000 agents responsible for $1bn overclaimed ...AccountantsDailyTax Practitioners Board Under New Management (speech added at 14:00) |
DODGY tax practitioners purposefully
exploiting the system are in the crosshair of the national regulator with the
number of misconduct incidents growing.
The Courier-Mail can reveal 2000 high-risk agents will be targeted by the Tax Practitioners Board as part of a new effort to stamp-out poor behaviour.
Overclaiming of work-related expenses by the agents, which have about 2.9 million associated clients, was estimated to cost the economy more than $1 billion in 2018.
Tax Practitioners Board chair Ian Klug will use an address to the Tax Instituteof Australia convention in Hobart today to call for the industry to work together to stop black economy behaviour.
“Behaviours of these agents are unacceptable,” he said.
“We are working alongside the Australian Tax Office in their strategies to target these practitioners.” The board is responsible for overseeing more than 80,000 tax agents. In 2018-19 749 sanctions were applied against rogue tax advisers, a 200 per cent increase on the previous financial year.
Mr Klug, a former Brisbane Marketing boss who took the reins of the board earlier this year, said its focus would shift to become a regulatory body to improve the quality of Australia's tax advisers.
“Particularly after the Hayne Royal Commission (the Banking Inquiry) it's become quite apparent community expectations in relation to regulators has become elevated,” he said. Tax office research reveals incorrect claims made by tax agents, 78 per cent, are higher than those of self-preparers at 57 per cent. Mr Klug said the majority of agents were doing the right thing but admitted there were about 2000 identified as “agents of threat or agents of concern”.
He said agents may be purposefully engaging in tax crime, evasion or avoidance.
“These agents ... know what they're doing and they're doing it consciously,” he said.
The Courier-Mail can reveal 2000 high-risk agents will be targeted by the Tax Practitioners Board as part of a new effort to stamp-out poor behaviour.
Overclaiming of work-related expenses by the agents, which have about 2.9 million associated clients, was estimated to cost the economy more than $1 billion in 2018.
Tax Practitioners Board chair Ian Klug will use an address to the Tax Instituteof Australia convention in Hobart today to call for the industry to work together to stop black economy behaviour.
“Behaviours of these agents are unacceptable,” he said.
“We are working alongside the Australian Tax Office in their strategies to target these practitioners.” The board is responsible for overseeing more than 80,000 tax agents. In 2018-19 749 sanctions were applied against rogue tax advisers, a 200 per cent increase on the previous financial year.
Mr Klug, a former Brisbane Marketing boss who took the reins of the board earlier this year, said its focus would shift to become a regulatory body to improve the quality of Australia's tax advisers.
“Particularly after the Hayne Royal Commission (the Banking Inquiry) it's become quite apparent community expectations in relation to regulators has become elevated,” he said. Tax office research reveals incorrect claims made by tax agents, 78 per cent, are higher than those of self-preparers at 57 per cent. Mr Klug said the majority of agents were doing the right thing but admitted there were about 2000 identified as “agents of threat or agents of concern”.
He said agents may be purposefully engaging in tax crime, evasion or avoidance.
“These agents ... know what they're doing and they're doing it consciously,” he said.
 |
2000 ‘high-risk agents’ targeted by tax office
Tasmanian State Convention - The Tax Institute
17 - 18 October 2019 | Hotel Grand Chancellor Launceston
The Tasmanian State Convention remains the state's premier taxation event.
This year technical program covers a broad range of tax issues that as advisers are confronted with.
Session 1: Keynote Presentation
Hear about the TPB’s current issues, initiatives and guidelines in relation to their role as the regulator of tax agents, BAS agents and tax (financial) advisers.
Ian Klug, AM
Chair Tax Practitioners Board
Hear about the TPB’s current issues, initiatives and guidelines in relation to their role as the regulator of tax agents, BAS agents and tax (financial) advisers.
Ian Klug, AM
Chair Tax Practitioners Board
The Tasmanian State Council of The Tax Institute and the Tasmanian Convention Organising Committee warmly invite you to attend our 2019 Tasmanian State Convention.
The Tasmanian State Convention remains the state’s premier taxation event. Once again, we have a line-up of outstanding speakers who will present on a range of topics we consider are relevant to Tasmanian tax practitioners and will provide a good understanding of the current issues.
We are excited to welcome two outstanding keynote speakers. Ian Klug, Chair of TPB will address the current issues and initiatives of the profession regulator. Andrew Mills, Second Commissioner, ATO will then drill down into what the ATO is hearing from small business tax payers, what the ATO is doing to address issues raised and the role for advisors.
The following technical program covers a broad range of tax issues that we as advisers are confronted with. As in recent years, there is an emphasis on the practical, including looking at residency, post-election tax insights, elder and upon death practice, marriage breakdown and agribusiness. This year the pre-convention workshop, which gives a hands-on start to the two days, focuses on asset protection, with Travis Anderson from Deloitte.
There’s ample time for networking with the convention dinner being held at the newly renovated Marjories Restaurant at Woolmers Estate. It is the perfect place to take in superb views over the beautiful Woolmers Rose Garden to the historic buildings, across the Norfolk Plains and out to the Great Western Tiers, while enjoying a first-class meal, fine Tasmanian wine and tax industry networking!
The Tax Institute wishes to acknowledge and thank our speakers, organising committee members and, in particular, our Tax Institute team members, for their significant efforts in making this convention the success that it promises to be. I commend the program to you and look forward to seeing you at the convention.
Thank you
The Tax Institute gratefully acknowledges the generous assistance of members of the
2019 Tasmanian State Convention Organising Committee:
Simon Clark, CTA, Longford Business Centre
Ian Heywood, CTA
Marg Marshall, CTA, WLF Accounting
& Advisory
Matthew Pawson, CTA (Life), Rae & Partners Lawyers (Chair, Convention Organising Committee)
Darren Sheen, CTA, Dobson Mitchell Allport
Tania Triffitt, CTA, Deloitte
Welcome
Matthew Pawson, CTA-Life
Chair, Convention Organising Committee
Creating Level Playing Fields
“So, what we need from you is to continue to work closely with your clients, and proactively engage with them on a regular basis. You are gatekeepers of the system, and by exercising due diligence, asking the right questions and examining their assumptions, you can position your clients for success.”
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