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TPB targets practitioners responsible for over $1 billion in overclaimed tax deductions

TPB targets practitioners responsible for over $1 billion in overclaimed tax deductions

The Tax Practitioners Board (TPB) announced today it will vigorously target 2,000 tax practitioners identified as being of the highest risk.

Speaking at the Tasmanian State Convention of the Tax Institute today, Chair of the TPB, Mr Ian Klug AM, outlined the TPB's renewed compliance approach to better protect ethical practitioners and their clients.

'These highest risk practitioners and unregistered agents have significant reach into the community, and are linked to around 4,600 controlled entities and 2.9 million associate clients,' Mr Klug said.

'Early analysis of 2018 tax returns for these clients alarmingly suggests overclaiming of work-related expenses to the tune of $1 billion.'

In addressing this issue the TPB has strengthened its collaboration with co-regulators, with recent data sharing with the Australian Taxation Office (ATO) focusing on reducing the tax gap through action targeting black economy income and incorrect work-related expense claims.

'The 'individuals not in business' tax gap estimate alone is calculated to represent lost revenue totalling $8.7 billion,' Mr Klug said.

'Reducing the tax gap not only delivers a stronger fiscal policy, it enhances the government's capacity to improve services for all Australians, build infrastructure and what we would all like to see - which is lower taxes for all Australians.'

'Tax gap reduction is not just the job of the ATO. There's a role for every Australian, and especially for tax practitioners and the TPB.'

Looking to the future, Mr Klug anticipates possible change to the TPB's role as a regulator following the independent review of the TPB, with the report due to Government on 31 October.

Proposed changes supporting an increase to the range of sanctions to combat higher risk practitioners, includes infringement notices, enforceable undertakings, interim and immediate suspensions, and lifetime bans.

To watch a full recording of the keynote presentation, visit www.tpb.gov.au/newsroom

About the Tax Practitioners Board

The Tax Practitioners Board regulates tax practitioners in order to protect consumers. The TPB aims to assure the community that tax practitioners meet appropriate standards of professional and ethical conduct.

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Thursday, October 17, 2019