ATO warns of raids on tax agents

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

The ATO and NSW and Australian Federal Police announced yesterday they will be making surprise visits to a number of residential properties and businesses, including tax agent practices, as part of an investigation into potentially fraudulent phoenix activity.

By Staff Reporter•12 June 2015•2 minute read

Deputy commissioner Michael Cranston said there are currently 100 officers involved in these surprise visits and that “more than $40 million in tax revenue is at risk in this Sydney network alone”.

“The network includes tax agents and lawyers who may be helping to set up phoenix businesses,” Mr Cranston said.

"[The investigation] also includes looking at whether liquidators may be working with fraudulent operators to help them evade paying their creditors."

“We are particularly concerned where third parties that are meant to be independent and transparent may be aiding dodgy business operators,” said Mr Cranston.

Federal and NSW Police, he said, will not provide prior notice of the visits.

“Sometimes the element of surprise is needed to get a result, particularly when dealing with companies we suspect are setting out to cheat the system and where records may be destroyed if we give notice,” he said.

The tax office announced last week that phoenix activity costs the Australian economy up to $3.2 billion each year, with honest businesses losing almost $2 billion in unpaid debts and the non-supply of purchased goods and services, as reported by AccountantsDaily.

“Phoenix operators create an unfair market advantage for themselves by deliberately liquidating companies to avoid paying creditors and employees and then setting up new entities to carry on the same business. This allows them to undercut their competitors,” said Mr Cranston.

Receive breaking news directly to your inbox each day.

SUBSCRIBE NOW

Tax

Profit motive puts crypto trades on revenue account

By John Jeffreys•02 July 2022

Website Notifications

ATO warns of raids on tax agents

Newsletter

Related articlesVIEW ALL

Profit motive puts crypto trades on revenue account

Jump-the-gun tax returns ‘at high risk of adjustment’

ATO begins chasing taxpayers with overdue payments and returns

Most read

ATO begins chasing taxpayers with overdue payments and returns

If you asset wash you’ll wear it, warns ATO

Banned directors leave nine failed companies and $16m debt

Accountants Daily Live: Big tech solutions for small firms - How to build a digital ecosystem

Big challenges for microbusinesses during COVID-19

Bookkeeping is key to managing and growing a business

Latest comments

Knowledge Centre

The Accountants SME Playbook

Understanding management of Australian tax system complaints: The key role of the Inspector-General of Taxation and Taxation Ombudsman

Succession planning in a time of crisis

Overview of banks and capabilities for SME clients

Latest Event

13 September 2022

New Broker Academy 2022

OUR PLATFORMS AND BRANDS

EVENTS AND STREAMING

Knowledge Centres

STAY CONNECTED

LINKS

OUR PLATFORMS AND BRANDS

EVENTS AND SUMMITS

KNOWLEDGE CENTRES

links

CATEGORIES

STAY CONNECTED