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Taxation Law FAQ - My Accountant Has Restructured My Financial Affairs

Date: July 13, 2011

Q.  We have been going to the same accountant for a number of years who is a family friend and he has restructured our financial affairs for the sole purpose of obtaining the maximum taxation benefits available and it seems to me that we may be sailing close to the wind.  What should we do?

A.  Unfortunately for you, you are already in trouble without knowing it.  Where a scheme has been entered into for the sole or dominant purpose of obtaining a tax benefit then you have committed a number of tax offences and may be subject to prosecution by the CDPP for criminal activity.  Once again accountants are not taxation lawyers and unfortunately a number of them give advice sometimes knowing it to be incorrect in the hope that it will please the client and they will retain their business.  Alternatively where this is not the case to give advice without fully appreciating the consequences leaving the client exposed to any number of initiatives which may be taken by the ATO or any number of other government-related bodies is negligence.  Retain a tax lawyer urgently.

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