IPA warns on ATO technology
The Australian Taxation Office (ATO) needs to get its technology right before it moves towards the implementation of "push" tax returns, according to the Institute of Public Accountants (IPA).
IPA chief executive Andrew Conway has pointed to recent difficulties experienced by the ATO with its IT platforms, including the program to process tax returns "and more recently with its website and portal which has caused significant cost for accountants and taxpayers both in efficiency and time".
"The plan may assist those people with very simple tax returns, but the vast majority will still require the services of tax agents who are there to provide added value to their clients," Conway said.
"People should be fully satisfied before agreeing to the return being automated by the tax office, and if unsure whether or not other tax deductions could be claimed, should seek advice from their trusted adviser, the accountant," he said.
Conway said it would be important for the ATO to highlight to the public both the risks and obligations associated with streamlined tax returns.
"It's not a one way street as taxpayers will still have to calculate their tax position in order to decide whether to accept the ATO's assessment. Otherwise, they could be agreeing to accept a lower refund without even realising," he said.
"At the end of the day, it is good that consumers have a choice, but considering that tax laws have not been simplified to any degree, a truly informed choice may require input from their trusted adviser," Conway said.
AUTHOR
Staff Writer
Recommended for you
Treasurer Jim Chalmers has handed down his third budget, outlining the government’s macroeconomic forecasts and changes to superannuation.
The central bank has announced its latest rate decision amid stubborn inflation and increasing geopolitical tension.
Government has introduced a bill to Parliament to legislate the first stream of the QAR reforms.
ASIC now has a 1:1 ratio when it comes to court success in the enforcement of crypto activities and more action is expected as Treasury seeks to introduce a regulatory framework.
