How A Tax Agent of Concern Could Leave You In Ashes

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How A Tax Agent of Concern Could Leave You In Ashes

It is vital to work with professionals you can trust when it comes to dealing with something as important as your tax, business advisory and accounts. That’s why being confident that your tax agent has your best interests as their top priority, both as an individual and for your business, is crucial.

A recent article published by Business News has brought to light the importance of knowing that your tax agent is compliant and providing you with the best advice on your tax, super and other regulatory obligations.

At present, an investigation is taking place involving 11 sites across Victoria on alleged phoenix activity (where a new company is registered to takeover [or rebirth] a failed or insolvent business) and tax avoidance. “We are examining a group of tax agents suspected of facilitating phoenix activity and promoting avoidance of tax involving GST, income tax and the failure to remit pay-as-you-go withholding tax payments,” Deputy Commissioner, Jeremy Geale, said in the article.

These tactics have resulted in the Agents of Concern’s clients managing to avoid paying tax of millions of dollars, meaning that both agents and clients are facing some serious allegations.

But this report isn’t a one-off. Illegal tax activity, such as phoenix activity, also creates a huge burden on the economy, meaning that you are out of pocket for others not doing the right thing. Staggeringly, up to $5.13 billion dollars a year is being lost from phoenix activity alone.

With your accountant being your most trusted business advisor in financial and business planning, it’s important that you know the advice you’re receiving from your tax agent is correct, fair and compliant. A good rule to follow is that if something seems too good to be true, it generally is. This applies with tax law as well.

Not sure if you’re tax compliant, or want to know more about working with our lawful and trustworthy tax agents? Book in for a meeting with Walker Hill by calling our office on 07 3367 3155 or emailing Nick Hill at nick@walkerhill.com.au.