‘Swift action’ on tax agents illegally accessing COVID-19 stimulus
Tax agents have been warned against artificially changing documents in order to allow clients access to schemes announced by the government in response to the COVID-19 outbreak, or else face “firm and swift action”.
In a joint statement, Australian Taxation Office second commissioner of client engagement Jeremy Hirschhorn and Tax Practitioners Board chair Ian Klug said some tax agents and businesses may be grappling with the tax consequences associated with the stimulus payments, and wondering what will attract their attention.
They also noted their awareness of some businesses already making changes to their business structures and employment arrangements following the stimulus announcements.
“We ask that tax agents and businesses be mindful that it is not acceptable to backdate or artificially change a business structure or employment arrangements, including changing the characterisation of payments, in order to obtain a benefit or payment that would not otherwise have been paid.
“The ATO and TPB will take firm and swift action should this be the case. We understand these situations can be difficult to navigate and we encourage anyone who needs advice to seek assistance from us.”
Both Mr Hirschhorn and Mr Klug said the ATO and TPB partnership is more important than ever in response to the impacts of COVID-19 and in helping the community respond to the crisis and supporting its clients.
“As you know, the intent of the government’s relief measures is to help the economy withstand and recover from the economic impact of COVID-19 by supporting businesses to manage cash-flow challenges and retain employees,” they said.
“As trusted guardians of the tax and super systems, we all have an important role to play in helping Australia overcome these challenges. The best way forward is for all of us to work together to ensure the government measures are applied in accordance with their intent.
“We are committed to supporting you during this difficult time, and ask that you support all Australians in the conduct of your practices.”
Adrian Flores
Adrian Flores is the deputy editor of SMSF Adviser. Before that, he was the features editor for ifa (Independent Financial Adviser), InvestorDaily, Risk Adviser, Fintech Business and Adviser Innovation.
You can email Adrian at [email protected].
