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  • Tax professionals: Protecting your clients and practice

    Tax professionals are well positioned to recognise potential tax avoidance schemes. If you encounter an arrangement that appears suspicious, let us know.

    If you have clients who are caught up in a tax avoidance scheme, encourage them to talk to us, so we can work together to resolve any problems.

    By reporting tax avoidance schemes as early as possible, you can prevent other people getting caught out and facing significant penalties, and help remove dodgy promoters from the profession.

    Your practice

    If your practice has any of these indicators of suspect schemes, then we recommend you revaluate your approach and report this to the ATO to mitigate your exposure to significant penalties.

    Things to check:

    • When buying a new business from another entity, check their processes and practices to assess the legality of any tax planning arrangements.
    • Talk to your employees about their attitudes towards risk to make sure they align with the services you provide.
    • Check for fees inappropriately paid to related parties and not the practice.
    • Implement strong governance and internal controls to protect against risk, including remuneration methods and fee structures, secondary oversight of tax advice services and the marketing materials you provide to potential clients.

    We take strong actions under Promoter penalty laws against promoters (advisers) who encourage clients to implement unlawful arrangements. It’s not worth being ordered to pay civil penalty and risks to you and your practice’s reputation.

    See also:

    Last modified: 13 Sep 2016QC 50068