ATO crack down on COVID-19 tax rorts

The ATO and the Tax Practitioners Board have now warned of "firm and swift action" against tax agents who defraud the government's stimulus package, with a dob-in hotline now established.  

The joint regulators have now sent a clear warning to tax agents and their clients that any attempt to change a business structure or change the characterisation of payments to access the  government's stimulus measures  will be met with scrutiny and disciplinary action.

The warning comes after the  p rofession was advised to steer clear of engaging in schemes to help clients access the government's cash-flow boost measure, with promoter penalties, general interest charges and disciplinary action listed as potential consequences.

The professional accounting bodies had also warned that the marketplace was rife with strategies to help businesses fall within the eligibility criteria to access the payments of up to $100,000.

"The intent of the government's relief measures is to help the economy withstand and recover from the economic impact of COVID-19 by supporting businesses to manage cash-flow challenges and retain employees," a joint statement by ATO second commissioner Jeremy Hirschhorn and TPB chair Ian Klug said.

"We ask that tax agents and businesses be mindful that it is not acceptable to backdate or artificially change a business structure or employment arrangements, including changing the characterisation of payments, in order to obtain a benefit or payment that would not otherwise have been paid.

"The ATO and TPB will take firm and swift action should this be the case."

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