The ATO has received an overwhelming number of tax returns recently, with around 810,000 lodged—double the number from the same period last financial year. The government attributes this surge to the $1,080 tax offset and increased refunds due to lower income tax brackets. However, tax audit scams have also spiked. Last financial year, the ATO reported 114,000 tax scam cases, with losses reaching up to 2.8 million.
In the following video, John from EndureGo Tax explains how to protect yourself from tax audit scams and reveals the latest scam tactics.
If you receive an email from the ATO or My.gov.au asking for your bank details or tax file number to process your refund, do not open it. Instead, call your trusted tax agent, who can contact the ATO on your behalf to verify the request.
Remember, the ATO typically does not call you directly if you have a tax agent. They will never threaten arrest, demand immediate payment, or provide a bank account for you to transfer money into. Stay vigilant and protect yourself from scams.
Would you be nervous if ATO calls you to demand an immediate repayment of ATO debt
Beware of the Latest Tax Scam Tactics
The latest tax scam trend involves fraudsters impersonating ATO staff. Scammers call taxpayers, claim to be from the ATO, and ask them to verify their tax agent’s number and phone number before continuing the conversation. Once the taxpayer provides this information, a second scammer—posing as the tax agent—calls the taxpayer. Together, they convince the taxpayer that everything is legitimate before the fake ATO representative requests payment into a nominated bank account.
Tax Agent Fees and Legitimacy
The fee you pay to a registered tax agent is tax-deductible because licensed tax agents are authorized to provide tax advice and services. However, if an unregistered individual assists with your tax affairs, it is illegal for them to do so, and you cannot claim a deduction for their fee. I always provide a tax invoice to my clients, ensuring they can claim their fair share of deductions in the next tax return.
Seek Official Guidance for Complex Tax Issues
If you encounter a complicated tax issue, avoid second-guessing the solution. Instead, seek confirmation from the Commissioner of the Australian Taxation Office. This step can protect you from interest charges and shortfall tax penalties.
If you have any specific taxation questions, feel free to call me at 0410-829-900 or email me at jc@endurego.com. Thank you.
