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Over 8,000 tax agents will be visited over the next four years as the ATO looks to ramp up its educational campaign to help agents who are under pressure and error-prone.
8,000 agents marked in upcoming ATO program
13 September 2018
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8 minute read
Speaking on the ATO’s tax professionals webcast, Assistant Commissioner Colin Walker said that 2,000 tax agents will be visited per year over the next four years as it tries to identify stressors causing errors contributing to the $8.76 billion individuals tax gap.
Mr Walker was keen to stress that these visits would be separate from its work on the 500 agents of concern who fail to go by the law.
The ATO had previously classified tax agents into three groups: one, those who are “examples of the profession” and have the right processes and checks in place; two, agents who are making “avoidable mistakes”; and lastly, a small number of 500 tax agents who fail to go by the law.
“We have a project that will see us do a lot of work with that group of agents that are trying to do the right thing but at times are indicating that they are having trouble or they are indicating they are making mistakes,” said Mr Walker.
“[We will be] focusing on that group of agents that seem to have a little bit of strife, they are quite compliant in the normal circumstances and we are going to develop ways and means to try and help them to work through so they don’t become agents who are egregious and don’t become agents who are reckless and at the same time we are able to get a level playing field.
“[We want] to not only understand the difficulties and the stressors and the strains that the agents are going through but to [also] give them good advice as to how to deal with those issues. It is not about compliance; it is about helping people to get it right.”
Level the playing field
Morris and Associates tax principal Mark Morris said that it was important to have more rigour in the tax system to provide a level playing field for model tax agents and to understand what was driving some agents to make mistakes.
“Is it because clients are increasingly discriminating in terms of fees, there’s a lot more shopping around, so is that a factor? Is it a factor that you may not be able to get qualified staff to help you? Is it a factor that you end up giving advice on areas you perhaps shouldn’t because you don’t have the confidence, and I also think it is also a factor, with respect to government, the complexity of the legislation,” said the professor of practice at La Trobe University.
“They debrand us. When they don’t have integrity, then you get a sense the whole profession is affected.”
Likewise, Anderson Tax and Consulting director Debra Anderson was hopeful that the ATO’s program would help put a stop to certain poor practices in the industry.
“I think prevention is always better than cure,” said Ms Anderson.
“The level playing field is very close to my heart. I’ve lost a few clients this year because I wouldn’t claim the dining table and chairs, the $4,000 couch, the $10,000-a-month personal trainer which was put as staff training.
“There are so many good agents and they are really frustrated that there are this handful that aren’t.”
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- How about the ATO up their service standard from the current 28 days. This is an awful long time to wait on the ATO for basic functions, like issuing an ABN.0
- So, what is so unusual about telling a prospective client that they can't claim a particular deduction - and then to find that they go elsewhere? That doesn't mean that they get the deduction, they may be knocked back by other agents in any event. I would have thought that there already is "a level playing field" with agents - whatever that might mean. We have been refusing to claim deductions suggested by clients for over 30 years - nothing is different now, other than the ATO using "in terrorum" tactics. Get out into the field and do your job! Or is the ATO like several other agencies outed in the Royal Commission - asleep at the wheel!0
- Why is it necessary to "educate" 8,000 Tax Agents who are doing the right thing, when the ATO have already identified 500 who are blatantly abusing the system? How much of the alleged "tax gap" can be attributed to the troublesome 500? Does the "tax gap" really exist, or is it just code for " we don't like people claiming so many deductions..."?
As has been said in numerous other posts in this publication on this topic, if the ATO thinks a claim is dubious then audit the claim and knock it out. Isn't that their job?0 - "We're from the Government and we're here to help you." Sounds like a catchy new slogan for a "reinvented" ATO which has tired of "building a better Australia" or whatever it was they thought they were doing. Plus ca change....
One can only wish them the best of British luck. Adam Smith was more realistic about this naturally unpopular race of men.0 - About time this has cost me a lot of money over the years. Time to even the playing field and no more "lip service" form the ATO And TPB we hope0
