ATO urges taxpayers to seek independent financial and tax advice
The Australian Taxation Office (ATO) has urged tax payers to seek independent financial advice before entering so-called tax avoidance schemes as they prepare to lodge their end-of-financial-year tax returns.
It is around this time of the year that proponents of tax schemes become active, often promoting them as complex investments that "promise you 'wealth creation' and financial security", ATO tax commissioner Michael D'Ascenzo said.
Other schemes promise taxpayers large up-front tax deductions for donations to charity or 'green initiatives', the ATO stated.
D'Ascenzo said that while these schemes often advertised guarantees of exclusivity and the approval of so-called 'experts', the tax benefits might not be eligible under tax law.
"Doing your research and seeking independent financial and tax advice from someone not involved with arrangements before investing is your best protection against promoters of tax avoidance schemes, or alternatively you can make an enquiry with the ATO," D'Ascenzo said.
In an effort to assist taxpayers, the ATO has partnered with Paul Clitheroe, chairman of the Government's Consumer and Financial Literacy Taskforce, to produce an online video that explains the financial dangers of getting caught in tax avoidance schemes.
"Remember, if it seems too good to be true, it probably is," D'Ascenzo said.
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