ATO urges taxpayers to seek independent financial and tax advice
The Australian Taxation Office (ATO) has urged tax payers to seek independent financial advice before entering so-called tax avoidance schemes as they prepare to lodge their end-of-financial-year tax returns.
It is around this time of the year that proponents of tax schemes become active, often promoting them as complex investments that "promise you 'wealth creation' and financial security", ATO tax commissioner Michael D'Ascenzo said.
Other schemes promise taxpayers large up-front tax deductions for donations to charity or 'green initiatives', the ATO stated.
D'Ascenzo said that while these schemes often advertised guarantees of exclusivity and the approval of so-called 'experts', the tax benefits might not be eligible under tax law.
"Doing your research and seeking independent financial and tax advice from someone not involved with arrangements before investing is your best protection against promoters of tax avoidance schemes, or alternatively you can make an enquiry with the ATO," D'Ascenzo said.
In an effort to assist taxpayers, the ATO has partnered with Paul Clitheroe, chairman of the Government's Consumer and Financial Literacy Taskforce, to produce an online video that explains the financial dangers of getting caught in tax avoidance schemes.
"Remember, if it seems too good to be true, it probably is," D'Ascenzo said.
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
