16 Jul 10 Preamble - Friday, 16 July 2010Following the Government's release of draft regulations on the coverage of the Tax Agent Services Regime, the Taxation Institute again publicly debated the need for financial planners to be included in the coverage of the Regime as a matter of consumer protection. We had a letter published in The Australian Financial Review on Wednesday, 14 July 2010: "Planners must register for tax advice".
The Government has exempted financial planners for 12 months and the Financial Planning Association says the tax advice they provide to clients is only “incidental” - a document provided to us by a member reflects the reality. This detailed wealth management plan is advice from a financial planner to a client about re-structuring income and minimising tax in the lead-up to retirement. It contains strategies for salary sacrifice and superannuation, containing at least nine specific pieces of tax advice. Commonsense suggests that managing wealth and paying appropriate tax are interdependent concepts that are inseparably entwined. The public not only has the right to expect anyone advising on tax meets the full requirements of the Tax Agent Services Regime, but that they are covered by the protections it provides.
Please see below for details of other activities this week.
Robert Jeremenko FTIA