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ATO pursues action against former EY tax partner

Mike Taylor1 November 2023
Blind justice and bad apples

Another major consultancy has become the subject of legal action over tax schemes, with the Australian Taxation Office (ATO) stating that it had initiated Federal Court action against a former Ernst and Young tax partner.

The ATO said that the Commission of Taxation had lodged an application in the Federal Court seeking orders for the imposition of a civil penalty under the Promoter Penalty Legislation.

It said the Commissioner will allege a former Ernst & Young (EY) tax partner, promoted a tax exploitation scheme noting that “as the matter is before the courts and no findings have been made, the ATO is limited in making any further comments”.

“The ATO has been working closely with the Tax Practitioners Board (TPB) on this matter.”

Promoter Penalty Laws are in place to deter and disrupt the promotion and implementation of aggressive tax avoidance and evasion schemes.

“The promotion of tax exploitation schemes undermines the integrity of the tax and super system and challenges community trust and confidence. These schemes create an uneven playing field for everyone, including businesses and advisers.

The ATO uses Promoter Penalty Laws to take action against alleged promoters of tax exploitation schemes, regardless of the firm size, occupation, position in their organisation or standing in the tax community,” the ATO statement said.

Mike Taylor

Mike Taylor

Managing Editor/Publisher, Financial Newswire

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Researcher
3 months ago

Might be time to have a royal commission into accountants!