Federal Budget 2024: Australia has made its future, but leaves small...
Treasurer Jim Chalmers presented his third Federal Budget on 14 May. The small businesses temporary instant asset...
READ MORE
Accountants must make their clients aware of behaviours that will attract the ire of the ATO.
The ATO has revealed the characteristics, behaviours and tax issues that it would be fixated on when it reviewed privately owned and wealthy groups.
The Tax Office advised accountants with clients from those statuses to ensure they were aware of the behaviours and characteristics that would attract the ire of the ATO.
The ATO said these privately owned and wealthy groups are:
Assistant commissioner Jenny Lin said it is important for accountants with clients that fell into these categories to be across the Tax Office's gaze.
“It’s important to stay up to date with what attracts our attention as we regularly review this content to keep it up to date,” said Ms Lin.
“Understanding the behaviours and tax issues of concern that impact privately owned and wealthy groups will help you get things right.”
“You should engage with us as soon as possible if you’re concerned about any arrangements you may have entered.”
The ATO said it published the list of behaviours, characteristics and tax issues to help organisations’ accountants get it correct at tax time and for it to also be transparent in its actions.
The behaviours and characteristics which it said could attract its attention are:
The ATO released its focus area for privately owned and wealth groups after it warned the public of schemes aiming to tempt SMSF trustees into illegal early release arrangements.
The Tax Office said the consequences for the illegal access or use of an SMSF could result in the loss of some or all of the individual’s retirement savings and the possibility of being disqualified as a trustee of their SMSF and resulting in their fund being wound up.
This article was first published at Accountants Daily.