Accountants demand ATO action on illegal advice
By Craig Phillips
TheInstitute of Chartered Accountants in Australia(ICAA) has appealed to theAustralian Tax Office(ATO), calling on it to stem the tide of unqualified tax advice being offered across the industry.
Under existing law, only a registered tax agent or practicing lawyer is eligible to provide tax advice for a fee, but in a survey of more than 400 tax practitioners, the ICAA has identified a range of individuals and professions illegally providing tax advice.
Around 46, 41 and 23 per cent of respondents claim to have had personal experience with financial planners, real estate agents and bookkeepers respectively, providing unqualified tax advice.
According to the ICAA, the activity costs consumers millions of dollars each year, with such advice often resulting in serious financial harm to the clients involved.
ICAA chief executive officer Stephen Harrison says the proliferation of unqualified tax advice is an alarming development as consumers “are making decisions about expensive investments and their retirement, based on advice from people not legally qualified to give it and who don’t have the necessary skills and knowledge”.
Other industries identified for offering illegal advice include insurance brokers, stockbrokers, banks, conveyancers and mortgage brokers.
“We often get calls from members despairing at having to sort out tax problems of clients who have acted on questionable advice.”
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