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H&R Block has challenged the ATO’s intentions to further increase automation in tax reporting processes, warning that taxpayers may lose out.
H&R Block rejects ATO automation proposal
28 September 2015
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6 minute read
As previously reported in AccountantsDaily, ATO second commissioner Geoff Leeper noted the possibility of Australia adopting a similar model to that in the UK, under which taxpayers are offered a standard deduction fee “no questions asked”.
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H&R Block stated that the ATO’s push for automation “could only work if the deductions rules are changed so that the ability to claim work-related deductions is either dramatically scaled back or replaced with some form of standard deduction”.
“Millions of taxpayers could lose out as a result” if these changes were implemented, the firm said.
Mark Chapman, director of tax communications at H&R Block, noted that while the ATO has a duty to make reporting easy for taxpayers, the process has to be approached carefully.
“That can’t be at the expense of the legitimate ability of taxpayers to offset work-related expenditure they have incurred against their income,” he said.
Mr Chapman also made reference to other overseas models, noting the impact upon deductions in the tax reporting process.
“Automation has proven overseas to work against the interests of many individual and business taxpayers who are entitled to claim deductions as part of their income producing activity,” he said.
H&R Block reiterated the firm’s submission to the federal government’s tax reform white paper, which argued for a loosening of rules regarding deductibility of self-education expenses, and for retaining the current ability of taxpayers to claim deductions for work-related expenses “on the grounds that such deductions are fair and in many cases essential to enabling employees to fulfill their duties at work”.
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