FPA attacks Government and ATO
Financial Planning Association (FPA) chairman John Hewison has blasted the Federal Government and the Australian Tax Office (ATO) over their stance on alienation of personal services income.
Hewsion told today's CFP conference the interpretation of the alienation legislation by the ATO was "completely ludicrous and unjust".
"As is the reputation of the regime of the current taxation commissioner, justice and fair-play are not virtues to which it aspires," he said.
"In fact, our experience in dealing with representatives of the TAO have been characterised by a mood of arrogance and total lack of concern."
Hewison will meet with Prime Minister John Howard next week to voice the financial planning industry's concerns personally.
He will be seeking a direct commitment from the Prime Minister that financial planners will receive the same treatment as other professionals under the alienation laws.
"We will not leave that meeting until we're confident the Prime Minister fully understands the damage this legislation has inflicted on our members and the legislative solutions proposed by us," Hewison said.
According to the FPA, 12,000 financial planners could suffer from the crippling compliance alienation laws which effectively deem planners as employees of licensed dealer groups because of the structure of their client income through the dealers, "much the same as a medical practitioner receives patient incomes through the Medicare system".
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