Managing tax time in 2020 Critical tips for CPAs - Accounts NextGen

Managing tax time in 2020 Critical tips for CPAs

Managing tax time in 2020 Critical tips for CPAs

Tax agents have begun scheduling their meetings with the client and discussing income generated from stimulus measures. During Covid-19, the economic stimulus support given to the businesses has proved to be a great support to numerous companies. Many clients have rearranged their business affairs to avail of the benefits of Covid-19 stimulus measures. We bring some critical tips for CPAs in case you come across such a client.

With the execution of economic stimulus measures by the Government of Australia, the ATO has tightened its seat belt to review claims and check the eligibility criteria to ensure the integrity of the superannuation system and tax. As expected, many businesses are reported for their flawed payment to Jobkeepers, and many have been warned for filing early superannuation without being eligible.

With the tax time on the edge, tax agents are on the job of computing income from stimulus measures under income tax return 2020. In many cases, tax agents may detect intentional fraud, concealment of information, or any action hampering the rule’s uprightness.

In some instances, tax agents may come across information that suggests potential fraud or behaviors of concern or the client may disclose actions that contradict the integrity of rules. For instance-

  • Creating unnatural restructure or fraudulent arrangement in the business to fulfill eligibility standards
  • Making false enhancement in wages of any month to maximize amounts
  • Changes in the classification of payments
  • Reschedule supplies
  • Releasing untrue statements or deceptive effort to establish a claim

Taxpayers are found guilty of repayments, interest charges, penalties, and conviction for breach of law under the Taxation Administration Act 1953 and the Criminal Code Act 1995 along with sanctions under the Tax Agent Services Act 2009. Job keeper legislation has also levied many joint liabilities for members of staff and company for the repayment of Jobkeeper amounts.

Outcomes of non-compliance

In the case of non-compliance, tax agents should make sure to acquaint the clients with all certain and possible entitlements and the penalty for the fraudulent act. On suspecting fraud, it is wise to investigate the matter from distinct aspects for better opinions of the case.

Members of CPA, Australia, will run in the need to follow the APES110 Code of Ethics for Professional Accountant (Code of Ethics) having regulations regarding the liabilities according to Non-Compliance with Laws and Regulations. It caters structure for the members to execute NOCLAR having laws regarding the financial statement of a business to its ability to continue its business or to avoid penalties.

It is highly significant for the members to remain versed with the fact that informing authority under NOCLAR is suitable only in a few cases and is applied only after unsuccessful attempts to correct the NIOCLAR charged with Governance. NOCLAR doesn’t lay any compulsion over its members to reveal any non-compliance or doubtful non-compliance when there is no responsibility to do so. Members must fulfill the applicable NOCLAR requirements and regard it as mandatory under the circumstances. It varies from case to case.

A tax agent may communicate with the clients to minimize the warnings of NOCLAR to a bearable level.

 Operation of Tax whistleblower protections

The tax whistleblower protections came into effect From 1 July 2019. It permits whistleblowers, like a tax agent, to reveal secluded disclosures to the ATO.

These disclosures are made where-

  •  There are rational reasons to believe the information implying misconduct or inappropriate affairs or situation concerning an entity or individual’s tax affairs.
  • The details may aid the entitled recipient in carrying out duties linked to those tax affairs.
  • When a whistleblower declares any form of logically supposed indecency, like making untrue statements or misrepresenting business documents to procure tax benefit via massive tax fraud, they are potentially entitled to guard.

Qualified whistleblowers enjoy protection from civil, criminal, and governmental responsibility.  Few clearly stated protections, too, are offered against contractual actions taken in answer to the revelation. The tax whistleblower laws give a tax agent a choice to disclose or not subject to their liability as per Code of Ethics. As the revelation in front of legal practitioners for lawful advice is protected, a tax agent may consider a legal professional’s disclosure as communication with the legal expert to find a suitable plan of action.

Our Offices

Melbourne Office
Level 19,
180 Lonsdale Street
Melbourne, VIC 3000

(03) 9015 8540

View on Map

Sydney Office
Level 20 & 21 tower 2 Darling Park ,
201 Sussex St, Sydney NSW 2000

View on Map

Brisbane Office
Level 27,
480 Queen St
Brisbane, QLD 4000

(07) 3011 6316

View on Map

Geelong Office
73 Malop Street Geelong VIC 3320

(03) 52982000

View on Map

Adelaide Office
Level 21,
25 Grenfell Street,
Adelaide, SA 5000

(08) 8423 4554

View on Map

Perth Office
The Forest Centre,
Level 29 & 30,
221 St George's Terrace,
Perth, WA 6000

(08)9288 0603

View on Map

Available 24/7
1300 NXTGEN (698 436)

Emails
info@accountsnextgen.com.au

Translate »
Book Appointment