Illegal Tax Saving Strategies
Illegal tax saving strategies damage the fabric of society and Government policy is clearly to minimise or eliminate them. If tax avoidance is left unchecked, the perception of unfairness has the potential to undermine the voluntary ethic in the broader tax system.
Every accounting practice in Australia will have at least a couple of clients who are employing some illegal tax savings strategies to save tax. Your comprehensive legal obligations under the Tax Agent Services Act 2009 (TASA) are very clear. You must ensure that you have used reasonable care in the preparation of every client’s tax return and that you do not lodge a tax return you know (or reasonably suspect) to be incorrect. For those couple of clients that are employing illegal tax saving strategies, you need to convince them to cease those activities, or immediately resign as their accountant. You have no choice.
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"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2