TPB targets high risk practitioners
The Tax Practitioners Board (TPB) will target 2,000 tax practitioners who were identified as being of the highest risk as they are responsible for over $1 billion in overclaimed tax deductions.
To address the issue, the board said it would aim to strengthen its collaboration with co-regulators, in particular with recent data sharing with the Australian Taxation Office (ATO) which would focus on reducing the tax gap through action targeting black economy income and incorrect work-related expense claims.
According to Ian Klug, chair of the TPB, these highest risk practitioners and unregistered agents had significant reach into the community, and were linked to around 4,600 controlled entities and 2.9 million associate clients.
“'Reducing the tax gap not only delivers a stronger fiscal policy, it enhances the government's capacity to improve services for all Australians, build infrastructure and what we would all like to see - which is lower taxes for all Australians,” Klug said.
“'Tax gap reduction is not just the job of the ATO. There's a role for every Australian, and especially for tax practitioners and the TPB.”
Klug also said he would expect possible change to the TPB’s roles as a regulator following the independent review of the TPB, with the report due to Government on 31 October.
Proposed changes would include an increase of sanctions to help combat higher risk practitioners and would include infringement notices, enforceable undertakings, interim and immediate suspensions and lifetime bans.
AUTHOR
Oksana Patron
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
