Tax practitioners have high level of trust: TPB

The survey, conducted in the lead-up to tax time, indicated that consumers place an exceptionally high level of confidence in their registered tax practitioner with 89 per cent of respondents to the survey indicating they have trust in their tax practitioner and 66 per cent saying they rate the experience they receive from their tax practitioner as excellent. 

However, despite this high level of trust the TPB is warning the public to be extra vigilant of scams aiming to lure unsuspecting honest consumers into using the tax services of unregistered preparers. 

The TPB said unregistered preparers operate outside of the law, often making money by skimming a portion of their clients’ refunds and charging inflated fees for return preparation services. They attract new clients by promising large refunds. Some will encourage filing fraudulent claims for refunds on items that their clients aren’t entitled to, while others will obtain myGov sign-in details from clients, putting their personal information at risk. 

TPB chair, Ian Klug AM, said because of the high level of trust from consumers it is easy for unregistered preparers to take advantage of uninformed consumers.

“We’ve put together a list of tips for taxpayers to follow this tax time to make sure they don’t become victims of bad advice,” Mr Klug said.

“If you see a tax practitioner making unexpected promises or an unregistered preparer offering tax services, it pays to be alert and a bit sceptical.”

In a recent case investigated by the TPB an unregistered preparer, Jessa Van Stroe (also called Jessa Layola) was banned by the Federal Court from charging clients a fee or receiving a reward to lodge their income tax returns. During the 2020-21 tax season, Ms Stroe illegally prepared thousands of tax returns leaving her clients exposed to penalties and unpaid taxes that they would be liable to repay. 

The TPB has issued an online guide for consumers called Tips for taxpayers: Tax Time 2022.

It advises that consumers check their tax practitioner is registered on the public register at tpb.gov.au/onlineregister. Only registered tax practitioners can charge a fee for tax agent services.