Off Topic - Tax Consultants / Accountants

[Scottz]

This is about off topic as it gets.

My accountants of the past 14 years have just informed me of a tax bill I owe from 2007 / 2008 financial year.

An ongoing argument with the ATO re the PSI test. Their last attempt to 'fix' the problem has made it worse and I now owe 3 times as much. Adding more pain and stress, the bill was due several months ago, but they forgot to tell me about it Like WTF 

So I am now searching for an accountant / consultant who can help me get through the PSI test (Personal Services Income) or at least give me a few options to work on.

My wife has a heart condition and with so much owed and overdue by several months I had to ring the ATO and arrange something fast. I feared that if the ATO were to treat me as a debt risk, they may do something drastic (like seize assets & bank accounts) and my wife could have some health issues with the stress that would cause. So I quickly arranged a payment method with the ATO to get a bit of breathing space.

Has anyone been through the PSI test? Especially those who are self employed. If anyone has some experience they can share I would appreciate it. You can pm me and swap info offline. I understand most people don't share bad news, it's kind of a human defence mechanism. We just want bad stuff to go away.

I was considering contesting the rule, however since my accountants forgot to keep me informed I have missed the 60 day window available to lodge an appeal after the commissioner has made the final decision, which was done last April    That stuffed my one last remaining option. Further there is the Federal Court - but cost rules that out. Only the rich can use the courts for justice, the rest of us get the stick.

 

Regards,

scottz - broke but not down yet.

[lightmaster240z]

I had some thing similar with my old accountant who is now doing time for be a bad boy. I had to ring the Tax dept a number of time to get some who was sympathetic.

The bulk of the excess amount will be fines that they will some time review, and reduce from experience.

I know this doesn't help but chin up mate there is light at the end of the tunnel and the tax dept don't want to send you bankrupt.

Bruce   

[saxon]

Accounting is like fixing a car. It's daunting if you've never done it before, but really you don't even have to have finished high school to be able to do it, just need to do some reading.

 

I'd suggest reading up on the PSI test on the ATO website and make a self assessment. If you don't agree with your accountants ruling, then try to fix it. If you do, then best to call the ATO often. It is possible to have fees and even interest waived in some cases.

 

An option to you could be still to make an ammendment to your tax return, which you can do for up 5 years after that year. So time is running out there.

 

Also, after the 5 years (or maybe 7, something like that), the tax office can't pursue you for anything you've done wrong on your prevoius tax returns, unless they've already started a case with you. So really your old accountant did you no service by bringing up this thing when close to 5 years is up. You should get a new Accountant.

 

[Scottz]

I drove 1400kms on Tuesday and Wednesday, and the long drive gave me a good chance to think it over.

When I got home I wrote out all my concerns (good to get things down on paper) and mailed it to the accountant. I asked for all my records to be returned and all work to stop immediately. I also gave him a chance to explain it to me in 5 weeks when I return from my next work rotation. Time for both of us to stew on it.

If the explanation is not satisfactory I have made it clear that I want him to pay the interest. I am also not paying for last years tax declaration work (which he has not yet lodged  ) and no payment for this years, since I'll be getting someone else to do it anyway.

The ATO has not placed any penalties, so I guess something was done right, but darn if I can work it out.

Saxon - Agree on the 'have a go myself' option. I did the same back in 2001 when the ATO fined me for what they called a fraudulent declaration regarding repairs to an investment property. I called it repairs / maintenance and they called it capital improvement. Took 2 years of stubbornness, but I won. Me and the wife aged 10 years in that 2. It was very stressing.

I reckon that’s when they got their nose out and have been on my tail ever since. I’ve been audited 4 times in 25 years. That’s got to be high in comparison to the general public and bordering on harassment. The first 2 were simple matters where I was not affected. But the last 2 audits have been very stressful.

I’m now doing the research and preparing my objection. I’m going to send it directly to the ATO officer who was handling the case. Unfortunately for me he can ignore it, since the commissioner already made a final decision, and I missed the 60 day window of opportunity to take it further with the Administrative Appeals Tribunal.

 

Scottz – broke and getting mad

[Sirpent]

Buddy

 

If its any help, a mate of mine who is an accountant worked as an investigator with the ATO before starting his own practice.

 

This guy knows tax legislation inside out, however he is Melbourne based.

 

Here is a link to his practice

 

http://www.bove.com.au/index.html

 

Cheers

 

John

[Scottz]

Thanks John

[pauly_adams]

hey scott,

ring the ato help line or the person in charge of your case, i have been told but dont hold it to me if a tax practiconer has lodge a form that is not satusfactory he may be eligible for the full amount, you have done the right thing by getting all of your records back, i would be going to a new accountant, and get them to go over the whole thing with a fine tooth comb, then i would lodge a amendment of the previous years tax if you find any discrepencies, as 1 small mistake made by the tax agent can cause thousends of $$$$$ and this can be fixed. if your accountant was at fault due to a error stick it to him for damages and any fines asociated. the people at the ato generaly are good people and cop alot of flack from people due to errors made by accountants and the accountants can be held responsable for the issue. try not to stress and if there is a issue and you do owe money and cannot pay expain why, you may find that your troubles will fade, unfortunatly you may still have to pay the money back but they may be able to deduct it out of this years tax. im feel for you and im sorry i cant help more or give better advice, just hang in there and take it one day at a time and things will work themselfs out.

 

goodluck pauly

[eddii]

Hey Scott,

I know an accountant who lives in our area. Would you like to talk to them?

Regards

Eddii

[RB30X]

I agree about making your accountant responsible for not notifying you and using that as your defence against the rest??

 

Sorry to hear of the situation regardless....

[Rat1314]

Seems like your already on the right track to getting things sorted out.

I'd suggest getting a new accountant, someone who have experience doing your type of returns. Being self employed and having investment property's does make things complicated.

Try not to stress.

And talk to the ATO, they don't want you to go bankrupt and can be very helpful at times. Mind you I've talked to a couple of people at the ATO who I felt like choking by the end of the phone call.

 

[Scottz]

Thanks guys,

I have spoken to the person at the ATO who is handling the case. He was very helpful. That's how I found out about the communication between the ATO and my accountants. I was shocked to discover that my accountants had stated that the full amount owed would be paid in July. How that was going to happen I do not know, since no one told me a darn thing.

I also got a copy of the PSI test in the records I asked for from the accountants. There are errors in the answers that were given.

The commissioner made a decision on 3 main points. Results Test, Supply of Tools and Equipment, and Rectification of Errors.

I have drafted a response which I believe is reasonable, but need an expert to check it over. I just wish I had known what was going on at the time, my involvement would have been more useful then.

I've still got a lot of reading and learning to do before I go to another accountant.

Running your own show is not all it's cracked up to be, but I'm determined to work through it. As the saying goes..."Don't throw your money away. It's to hard to earn".

 

scottz - broke and kicking

[peter t]

Scott,

        Been there done that so hang in there buddy. Was a long time ago but with the help of family I got through it and after 30 years have got my dream car. The Z. And what a family you have got. Not only your own but all us Z guys to offer advice and encouragement. Can't wait to front up to the Center link office to apply for a pension and start to get some of my money back from the ATO that took me a lot of years to pay. We didn't have things like computers or mobile phones in those days so it was a long drawn out affair to get things done.

Peter.