ATO assistant commissioner Karen Foat expressed concern about Australians being taken advantage of due to promises of large returns or discounted services that are much cheaper than legitimate registered tax agents.
“Unfortunately, we see too many instances where people have unwittingly used an unregistered preparer, which has resulted in a significant tax debt and loss of money. We also see instances where people do not receive their refund, or where fraudulent claims are lodged in their name without their knowledge,” said Ms Foat.
Unregistered preparers often use a taxpayer’s personal login details to access their ATO online accounts through myGov to lodge tax returns, the ATO has warned.
Legitimate practitioners would never ask for an individual’s MyGov credentials because they use dedicated ATO online services to lodge client returns, it was explained.
“Unregistered preparers pose a threat to vulnerable taxpayers and risk the reputation of registered tax agents,” said Ms Foat.
“They pretend to offer legitimate services to the community, but in reality, they pose a serious threat not only to the people that use them, but to the broader community and the tax system as a whole,” she continued.
Follow these 3 tips to protect yourself from people falsely claiming to be tax agents:
- Check whether your tax agent is registered – go to tpb.gov.au/search-register
- Protect your myGov login details and password – such details should not be shared with anyone, inclusive of tax agents. Registered tax agents can access the information they need themselves via dedicated ATO portals.
- Know your tax affairs – an individual can log into myGov to check on their tax affairs at any time, including for review of return and refund details. A registered tax agent or the ATO can also be contacted for this.
Nest Egg has recently reported on tips and tricks to successfully navigate this year’s tax season
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