ATO warns planners on aggressive tax practices
The Australian Taxation Office (ATO) has signalled it will be looking to financial advisers to help it in its current campaign against aggressive tax planning practices.
The ATO is expected to provide information materials to planners to assist them in discussing such tax arrangements with their clients.
The underlying message from the ATO to planners is that they need to be on the look-out for aggressive tax planning schemes to protect both their clients and their own reputations.
The ATO has cited the common warning signs of aggressive tax planning schemes as including:
- Lack of proper documentation, or advice discouraging seeking a second opinion;
- Financing arrangements that are too good to be true, including: promises of zero-risk; loans that don't have to be repaid; overly complex financing arrangements; and funding provided by the promoter; and
- Complex structures designed to hide, disguise, or improperly redirect income, expenses, or deductions.
"Being able to identify these schemes early will help to discourage your clients getting caught up in them before any damage is done," the ATO's message to planners said.
Recommended for you
Despite the year almost at an end, advisers have been considerably active in licensee switching this week while the profession has reported a slight uptick in numbers.
AMP has agreed in principle to settle an advice and insurance class action that commenced in 2020 related to historic commission payment activity.
BT has kicked off its second annual Career Pathways Program in partnership with Striver, almost doubling its intake from the inaugural program last year.
Kaplan has launched a six-week intensive program to start in January, targeting advisers who are unlikely to meet the education deadline but intend to return to the profession once they do.
