"An offensive letter with an attachment listing 25 “suspect” tax returns has been received from the ATO.
We have had to go back to 2003 to check details.
In each case the “problem” has been that allowable deductions were claimed against the Partnership or Trust distributions. The deductions were entered into the returns at the requisite items in the relevant section of the tax return in accordance with ATO generated Return Preparation Guidelines.
If the ATO doesn’t want us to use the items it demands be included in the forms, then why have them there? If they do want us to use them then why can’t they design their audit tests to recognise that the full distribution has been declared?
I suggest that Taxation Institute institute a class action against the ATO on behalf of all Tax Agents with regard to defective administration. I also believe that this abysmal performance by an organisation that I am coming to believe is totally dysfunctional cannot be allowed to be swept under the carpet. I ask that the ATO demand an extension to our lodgment programs on the basis that we are being forced to undertake the ATO’s work for it. If it can’t design better systems than are being deployed in yhis deplorable attack on Tax Agents then the taxpayers of Australia have a right to demand some answers from the Government. Why is it permitting such appalling waste of tax payer funds? Why has it given David Vos the order of the boot when he was the only bulwark the taxpayers of Australia have had between themselves and a gruesomely dysfunctional ATO?"