INTHEBLACK June 2022 - Magazine - Page 9
Following a COVID-19 hiatus, the ATO is working
through its debt book and contacting clients and their
agents to address unpaid liabilities. The best way to
resolve tax debts is to talk with the ATO and arrange
a workable payment plan, otherwise Director Penalty
Notices or disclosures to credit bureaus may follow.
In some situations, the client may also need to be
referred to an insolvency practitioner or support
for small business restructuring.
Many practitioners have experienced pressures
in their lodgement programs for the past two years.
Practitioners who are still struggling to manage
2020-2021 tax returns are advised to consider
contacting the ATO to discuss their situation and
options.
COMPLETING THE TAX RETURN
The range of services provided by tax agents expands
each year, and it’s a good idea for practitioners to
regularly review their letters of engagement, ensuring
that they properly reflect the terms and scope of the
engagement and the specific tax agent services being
provided.
This may include whether or not the practitioner will
perform any follow-up action required by the client or
the ATO, or whether the engagement includes assurance
of tax records.
The ATO is gathering and data-matching more
information than ever. Maximise the use of information
that is available and ask clients about unexpected items
or large variations from prior years. Take the
MANY PRACTITIONERS HAVE EXPERIENCED PRESSURES IN
THEIR LODGEMENT PROGRAMS OVER THE PAST TWO YEARS.
PRACTITIONERS WHO ARE STILL STRUGGLING TO MANAGE 20202021 TAX RETURNS ARE ADVISED TO CONSIDER CONTACTING THE
ATO TO DISCUSS THEIR SITUATION AND OPTIONS.
opportunity to confirm their communication preferences
and help them transition to digital communication.
The increased low- and middle-income tax offset is
expected to drive many individuals to their tax agent to
lodge straight away. With some pre-fill details taking up
to mid-August to become available, it is important to
highlight the risks of early lodgement to clients,
including amendments and penalties.
The ATO’s tax gap work has highlighted significant
non-compliance with car fringe benefits. Discrepancies
between GST and income tax amounts also attract
attention from the ATO.
When preparing a tax return, take the opportunity
to review and reconcile accounts for other obligations,
such as GST and fringe benefits tax to identify and
correct errors.
Be aware that the ATO and Tax Practitioners Board
(TPB) client verification guidelines have been finalised,
so it is important to ensure that proof of identity
processes satisfy the new requirements.
As always, keep in mind the Code of Professional
Conduct for tax agents and the TPB guidance on
reasonable care, supervision and control, and
outsourcing and offshoring.
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