ATO warns planners on aggressive tax practices
The Australian Taxation Office (ATO) has signalled it will be looking to financial advisers to help it in its current campaign against aggressive tax planning practices.
The ATO is expected to provide information materials to planners to assist them in discussing such tax arrangements with their clients.
The underlying message from the ATO to planners is that they need to be on the look-out for aggressive tax planning schemes to protect both their clients and their own reputations.
The ATO has cited the common warning signs of aggressive tax planning schemes as including:
- Lack of proper documentation, or advice discouraging seeking a second opinion;
- Financing arrangements that are too good to be true, including: promises of zero-risk; loans that don't have to be repaid; overly complex financing arrangements; and funding provided by the promoter; and
- Complex structures designed to hide, disguise, or improperly redirect income, expenses, or deductions.
"Being able to identify these schemes early will help to discourage your clients getting caught up in them before any damage is done," the ATO's message to planners 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.
