Commissioner Michael D’Ascenzo says it doesn’t pay to use an unregistered tax agent and it will likely increase your chances of being audited by the Tax Office.(c) Commonwealth of Australia
“Not only do registered tax agents have the qualifications and experience to handle your tax affairs, they are also regulated by the Tax Agents’ Board and are required to conduct themselves with the highest level of integrity and professionalism,” Mr D’Ascenzo said.
“However, some people present themselves as tax agents when they are not.”
Your tax return is your responsibility even if someone, including a tax agent, helps prepare and lodge your return for you. You need to make sure the information is accurate and that you can prove any claims for deductions if required.
“Each year the Tax Office receives complaints about people operating illegally as tax agents,” Mr D’Ascenzo said.
“While anyone can help you prepare and lodge your tax return or activity statement, only a registered tax agent can charge a fee for their services.”
Mr D’Ascenzo says the Tax Office uses sophisticated methods to identify tax returns prepared by unregistered tax agents.
“We analyse all tax returns for unusual patterns so those prepared by unregistered tax agents are likely to attract our attention,” Mr D’Ascenzo said.
“These returns will be closely reviewed and we may then ask the taxpayer for receipts or extra information to verify any claims.”
There are serious penalties for anyone caught operating illegally as a tax agent.
Last year the Tax Office investigated 122 allegations of people operating illegally as tax agents, with 15 cases successfully prosecuted.
A person caught operating illegally as a tax agent may be prosecuted and receive a penalty of up to $22,000.
You can check if your tax agent is registered by asking to see their Certificate of Registration of Tax Agent, and confirm it by contacting the Tax Agents’ Board. Visit http://www.tabd.gov.au or call 1300 362 829.
Article by Christie Lewis
Christie is Practice Manager at Alan Lewis Accountants . Besides accounting, her passion is for all things small business (and blogging, of course). You can contact Christie directly at christie@lewistaxation.com.au.
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