Did you know that you could avoid costly administrative penalties imposed by the ATO if you appropriately document your reasoning which led to your conclusion?
A recent AAT case stated the following:
The taxpayer had taken reasonable care by asking his agent for advice on the matter in question. The agent examined the relevant legislation, tax ruling and case law and also the comments made by the treasurer.
The steps taken by the agent were consistent with the extent of reasonable care that one would expect of a registered tax agent.
The fact the agent did not reach the right conclusion on his client's affairs did not mean that he had failed to take reasonable care.
For more information, contact Matt Zhou
on 02 9957 4033
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