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5 Things To Look For When Choosing A Tax Agent
Although E-Tax and Tax Pack are available, a large number of taxpayers in Australia commit mistakes at the end of financial year when they do their tax return. If you feel like you don’t have the experience or expertise to lodge your own return, you should consider investing in the services of a Tax Agent.
Although E-Tax and Tax Pack are available, a large number of taxpayers in Australia commit mistakes at the end of financial year when they do their tax return. If you feel like you don’t have the experience or expertise to lodge your own return, you should consider investing in the services of a Tax Agent.
For many people, using a Tax Agent means more money in their pocket more quickly, and a peace of mind should they receive a random tax audit.
Here are 5 things to look for when choosing a tax agent:
Reputation
Don’t just head into a Tax Agent’s office because they are on your way home from the supermarket, take a moment to check their reputation. Ask your family, friends, other business owners, attorneys or financial advisers for referrals, so that you’re assured that the tax professional you hired is capable of doing the job and not overcharging you. Also look at independent reviews, assess their website and the services they provide to determine their reputation.
You should also make sure that the registered Tax Agent belongs to a reputable accounting firm. If the ATO comes to believe that your tax professional has been too relaxed in applying the rules, there is no doubt that you will be subject to extra scrutiny- even if you have done everything correctly. At the end of the day, you are the one who is responsible for the information on your tax return. You will more likely save yourself the trouble of going through the ATO auditing process for things like income, expenses, GST, superannuation guarantee or payroll tax if they have a good reputation.
Keep an eye out for tax professionals who promise big refunds or states that you can deduct everything from your tax return. Although this sounds rewarding, you could get into serious trouble with the ATO for providing a tax return with false deductions.
Qualifications and Credentials
Unfortunately, there are some people out there still offering financial services that they are not qualified for. Anyone with a tax file number can handle returns, so it’s best to find a licensed and qualified professional if you want to be sure of a reliable service.
One of the first things you must do is check that your Tax Agent is registered with the Australian Tax Practitioners Board. Look out for the Registered Tax Practitioners symbol on their website, stationery, brochures or business cards. Only registered tax professionals are the only people allowed to charge you a fee or receive a fee when they provide financial services according to the Australian Taxation Office. If you’re still uncertain about your Tax Agent, you can also check their registration details on the TPB register.
Initiative
A good tax professional would do more than collect your receipts, and lodge your tax return. You want someone who is proactive in their approach, suggests and provides you information regarding areas where you can save money and potentially make more money. They should be asking probing questions about your occupation, your income and your expenses. Additionally, they should also be available to answer any concerns or questions, not just when the filing deadline is approaching. You need someone that keeps up to date with tax laws so that they can maximize your return, but not one who takes things too far or risks tax avoidance. They should be aware of all the deductions that you are eligible for, which you might have otherwise missed. That being said, you can be sure that your tax will be completed effectively and without errors.
Specialisation
Before choosing a Tax Agent, find out what specific areas they specialize in to see if they are a right fit for your needs. If you are a farmer, inheriting money, running a business or make many charitable donations, your tax situation is going to be more complicated. Look for someone who specializes in the type of return that you need to lodge, and inquire how much experience he or she has working with these tax returns.
It is also always a good idea that you find out what other services the accounting firm provides, as you may have a different needs in the future such as financial planning advice, retirement advice or help with your business plan. This way, you can find a Tax Agent who is competent and trustworthy and specializes in the areas you need assistance with.
Care
Above all, your tax professional should care about you and your tax return. They should be easy to do business with, keep your best interests in mind, and act professionally when handling your tax.
A great Tax Agent would be:
- 100% committed to providing you with the most effective tax solutions and services
- Transparent, and provides their costs up front
- Easy to get a hold of (on the phone or email) if you have any questions about tax
- Dedicated to helping you become financially secure
You can be sure that your hard earned money is not going to waste and that you are making the right decision in the long run if you consider these tips when looking for a Tax Agent.
Go to our contact page to arrange a free consultation with one of our Accountants in Gold Coast.
