Stay protected at tax time… check your tax practitioner is registered!
Credit: Wen & Co
In the lead up to tax time the Tax Practitioners Board (TPB) is urging taxpayers and small businesses to protect themselves from unregistered tax preparers.
In fact the TPB are running a national awareness campaign in June to empower consumers to know who their tax agent is and to check whether they are a registered tax practitioner.
Previous years have shown the serious issue of unregistered tax preparers using taxpayers’ MyGov account details to lodge tax returns. This illegal activity exposes consumers to fraud and puts their financial and personal information at risk.
Is your tax practitioner registered?
You can check the TPB Register to ensure the tax practitioner you use or intend to use is registered. The register includes details of registered tax practitioners and some deregistered practitioners, including the reasons for termination of their registration.
Also you can look for the registered tax practitioner symbol on the business materials like websites, email signatures and business cards. It’s an easy way for consumers to see if their tax practitioner is registered with the TPB.
Risks of using unregistered tax practitioners
Tax practitioners include tax agents and BAS agents. They must be registered with the TPB to provide tax agent services, BAS services or in some cases, tax advice services for a fee.
You are taking big risks if you use an unregistered tax practitioner to:
prepare and lodge your tax returns and statements;
provide you with tax advice; or
represent you in your dealings with the Australian Taxation Office (ATO).
Possible risks include:
The agent may not be fit and proper or have the required qualifications or experience to provide you with a competent service that meets appropriate professional and ethical standards.
If the practitioner fails to lodge a tax return or statement on your behalf by the required due date or makes a false or misleading statement to the ATO (for example, by lodging an incorrect return or BAS), and this results in a tax shortfall amount, the ATO may impose administrative penalties on you.
Under the ‘safe harbour’ provisions administered by the ATO, you will not be liable for penalties in certain circumstances, if you engage a registered practitioner. However you will not be entitled to any ‘safe harbour’ protection if you engage an unregistered practitioner.
The agent may not have appropriate professional indemnity insurance cover to compensate you if you suffer loss due to an act, error or omission that results from a service they provide.
Check out TPB for more info on the risks of using unregistered tax practitioners and don’t forgot to check whether your tax or BAS agent is registered here.
Sharing your myGov account details puts your personal and financial affairs at risk!
Next steps:
While VivaEthical is not a tax practitioner do not hesitate to call us for a quick chat or drop us a line if you are wanting advice on tax matters as we can refer you to a trusted and registered tax practitioner if necessary.
References
Tax Practitioners Board
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