Mr A has formed an Accounting Practice business partnership. Your area of expertise is in Income Tax matters in Australia. Jonathan is one of your clients and he has come to see you seeking advice on how to minimize his tax. MR A explains to Jonathan of the many ways in which to reduce his tax liability. Jonathan is most impressed by what MR A has told him and he pays a fee for his professional advice and then carries out Mr A's suggestions on tax minimisation. Unfortunately, MR A has misread the tax legislation and as a result Jonathan is audited by the Australian Taxation Office who then issues him with a tax liability of $600,000.00 plus interest. Discuss what the consequences are to MR A for giving Jonathan bad advice.
Mr A has formed an Accounting Practice business
is in Income Tax matters in Australia.
Jonathan is one of your clients and he has come to see you seeking advice on how to
minimize his tax.
MR A explains to Jonathan of the many ways in which to reduce his tax liability. Jonathan is
most impressed by what MR A has told him and he pays a fee for his professional advice
and then carries out Mr A's suggestions on tax minimisation.
Unfortunately, MR A has misread the tax legislation and as a result Jonathan is audited by
the Australian
interest.
Discuss what the consequences are to MR A for giving Jonathan bad advice.
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