Earlier this month, it was reported that the Australian Taxation Office (ATO) targeted a group of tax agents who were suspected of being in involved in ‘tax mischief’.
The suspects involved were accused of promoting avoidance of tax involving GST, income tax and failure to remit pay-as-you-go withholding tax payments.
The ATO revealed that it had received complaints from concerned tax professionals and clients about the alleged activity, in addition to its own intelligence.
The estimated cost of this activity across Australia could now exceed $5 billion annually, so this is an issue that the ATO is taking very seriously.
The ATO will be taking broader action against tax agents it deems to be ‘high risk, or ‘agents of concern’, ensuring that there will be significant consequences and the Tax Practitioners Board notified.