TPB targets high risk practitioners
The Tax Practitioners Board (TPB) will target 2,000 tax practitioners who were identified as being of the highest risk as they are responsible for over $1 billion in overclaimed tax deductions.
To address the issue, the board said it would aim to strengthen its collaboration with co-regulators, in particular with recent data sharing with the Australian Taxation Office (ATO) which would focus on reducing the tax gap through action targeting black economy income and incorrect work-related expense claims.
According to Ian Klug, chair of the TPB, these highest risk practitioners and unregistered agents had significant reach into the community, and were linked to around 4,600 controlled entities and 2.9 million associate clients.
“'Reducing the tax gap not only delivers a stronger fiscal policy, it enhances the government's capacity to improve services for all Australians, build infrastructure and what we would all like to see - which is lower taxes for all Australians,” Klug said.
“'Tax gap reduction is not just the job of the ATO. There's a role for every Australian, and especially for tax practitioners and the TPB.”
Klug also said he would expect possible change to the TPB’s roles as a regulator following the independent review of the TPB, with the report due to Government on 31 October.
Proposed changes would include an increase of sanctions to help combat higher risk practitioners and would include infringement notices, enforceable undertakings, interim and immediate suspensions and lifetime bans.
AUTHOR
Oksana Patron
Recommended for you
With regional and rural suburbs exhibiting high spare capacity to invest, Money Management speaks to three regional advisers on the opportunities beyond the major cities and the importance of a strong network.
Platform consolidation is expected to accelerate among financial advisers this year, as software company Finura pinpoints which two platforms are set to be the winners, thanks to this trend.
The software provider has made several appointments in its APAC wealth propositions team, with a focus on driving growth across digital advice, Xplan and strategic partnerships.
The platform has announced it plans to close its Xplore managed discretionary account service in 2026 which holds $2 billion in funds under administration.
