Following a referral from the Australian Taxation Office (ATO) we became aware of a company that was, for a fee, assisting its clients with preparing applications to the ATO for the early release of superannuation funds, in order to pay for weight loss surgery. Our investigation led to the discovery of two additional companies providing the same service for a fee. 

The preparation of an application for early release of superannuation funds on behalf of another taxpayer is a tax agent service under the Tax Agent Services Act 2009 (TASA). Only registered tax agents are permitted to provide this type of tax agent service for a fee. It is important to understand that ‘assisting’ or ‘guiding’ a client via Zoom to fill out an application on the client’s own MyGov account (as was the case in this matter), is considered a tax agent service. That is because it still involves advising the client on liabilities, obligations or entitlements of an entity that arise, or could arise and the client is relying upon that advice in making their application. 

Upon contact, all three companies were unaware that this type of service was a tax agent service and by providing such a service for a fee they were in breach of the TASA. 

Outcome

The companies involved cooperated with our investigations and have now provided us with signed undertakings confirming they would no longer provide tax agent services for a fee or other reward while unregistered. 

This case highlights the variety of services that fall within the definition of a tax agent service and how we work with different entities to ensure compliance with the TASA. The TPB reminds taxpayers that registered tax agents would never require access to personal myGov details. Taxpayers should never share their myGov details.

Report unregistered practitioners

The TPB is proactive in warning and where necessary, seeking civil penalties in the Federal Court against unregistered entities who provide tax agent or BAS services for a fee or reward in breach of the TASA. Unregistered entities pose an ongoing risk to taxpayers and the tax system. We welcome referrals of complaints and evidence of this behaviour. If you suspect someone is providing tax agent or BAS services for a fee or reward, or advertising the provision of these services, without being registered, please make a complaint.