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Too many businesses roll the dice on tax debt: Jordan

Profitable companies that choose to relegate their tax and super obligations will be a focus of the ATO’s crackdown on collectable debt, Commissioner says.

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Too many businesses “roll the dice” on tax liabilities and treat them like a free loan, ATO Commissioner Chris Jordan says.

He said small business owed more than its share of collectable debt and a rising number of profitable businesses with the capacity to pay were choosing not to.

Speaking at the Tax Institute Summit in Melbourne this morning with six months left of his tenure, Mr Jordan was “unapologetic” about the ATO’s tougher stance on collectable debt and called upon tax professionals to help.

“Most collectable debt is self-assessed. It includes GST a business has collected and received credits for but hasn’t remitted. It includes unpaid pay-as-you go withholding and superannuation guarantee charge that has a direct impact on employees.”

“Small businesses continue to be over-represented in our debt book, owing over $33 billion of the $50.2 billion of collectable debt – $23 billion of that is unpaid business activity statement debt.”

“There are a growing number of profitable businesses who have the capacity to pay their bills but are choosing not to. Businesses appear to be deprioritising payment of tax and super.”

“This needs to stop.”

“We are hearing more and more from tax professionals that some businesses are rolling the dice, treating ATO liabilities like a free loan.”

“This is not acceptable.”

“I am calling on the tax profession for support. You can reinforce to your clients they are only the temporary custodians of GST, pay-as-you-go withholding and super guarantee – it’s not theirs.”

He said another focus in his final six months was deliberate fraud, “which is nothing more than theft from the community” and the integrity of the tax system in the light of “recent events”.

“In response to increasing fraud attempts, we are embedding fraud prevention methods into our systems and increasing our detection capabilities,” he said.

“We have bolstered the number of our people focused squarely on tackling fraud attempts. We have established the Fraud and Criminal Behaviours Group with 500 dedicated staff on the case.”

“Integrity is also front and centre for us. I welcome and support any actions that strengthen the integrity of the tax system. Particularly further review and consideration of current limitations within tax secrecy laws and our investigative powers.”

“Integrity matters and the public’s desire for integrity in the tax profession is likely to only increase. Recent events are a reminder of the important and trusted role all advisers have and the important role we all play in building trust and confidence in the system.”

 

 

 

Philip King
06 September 2023
accountantsdaily.com.au


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David Forrest

Director
BEc (Acc), MBA, CPA, FFin

David has been in the Financial Services Industry for nearly 30 years. He was one of the founding Directors of the successful Financial Planning and Stockbroking Practice, Henderson Gregory Forrest, for a decade. Prior to that, he held senior roles in companies such as ING, KPMG Accountants and AMP. David was previously Chairman of OAMPS Superannuation Trustee Board and currently serves as an independent Board Director for several companies.

David’s extensive experience in all forms of superannuation, including Self Managed Super Funds (SMSF), Defined Benefit Funds, retirement funding through Account Based Pensions, stockbroking with a focus on Direct Share Investment, Taxation/Remuneration Planning, Centrelink, Aged Care and business management, equip him to advise expertly on all aspects of Financial Advice.

Those with a particular interest in superannuation/SMSFs, direct share investment, salary packaging or applying for the Centrelink Pension will find his knowledge and ability in formulating and implementing creative, logical and simple wealth creation strategies a valuable asset.

David maintains a strong personalised client service focus, providing tailored solutions for clients.

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David Forrest is an Authorised Representative of Integrity Financial (SA) Pty Ltd ABN 16 133 921 187 — AFSL No 334846

Michelle Forrest

Michelle Forrest

Business Finance Manager
B Bus (Acc), CPA

Michelle’s career has spanned across the Financial Services, Retirement Living and Aged Care industries working in the private sector, not for profit and more recently with the state government for over 20 years. Her experience extends to many facets of the financial services industry, having worked in superannuation administration, technical support and financial planning practice administration.

Commencing with AMP and subsequently working in commerce and accounting roles with companies such as Brambles, Adelaide Bank Retirement Services, ECH Inc and SA Health and Wellbeing, Michelle returns to financial services after working in practice financial management at Henderson Gregory Forrest. This wide range of experience from senior accounting and management roles has provided Michelle with a strong background in business administration.

With an astute financial acumen and keen interest in business improvement strategies, Michelle ensures the smooth running of the Integrity Financial Advisory practice providing valued management support to our personalised client service focus.

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Jasmine Smith

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Jasmine has worked in the financial services industry for over 12 years in all areas of client administration, working with David since 2013.

Jasmine has extensive knowledge and experience in client service including implementation of advice, portfolio reporting, assisting with the establishment of Self Managed Super Funds (SMSFs), term deposit management and a long history of helping clients with their enquiries.

Jasmine’s attention to detail, yet gentle approach, means she is able to solve the trickiest of questions for our client community.

Jasmine has gained her Certificate III in Financial Services qualification.

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Merrilyn Smith

Senior Client Service Manager

Merrilyn has worked in the financial services industry for over 11 years in all areas of client administration, and is a new addition to our client services team, returning from Melbourne to join the team in June 2019.

Merrilyn has extensive knowledge and experience in client service including implementation of advice, managed fund administration, assisting with the establishment of Self Managed Super Funds (SMSFs) and process improvement for the previous practices she has worked with. Merrilyn’s experience with direct shares constitutes the other part of our administrative support for direct equity investments.

Merrilyn’s warm and caring nature continues to endear her to our clients and she has already established herself as a valued member of our team.

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