The ATO has launched a new awareness campaign to help taxpayers protect themselves against promoters marketing dodgy tax and investment schemes.

From the ATO press release:

Don’t let yourself get a lemon

Are you considering a tax-effective investment?

It’s important you have all the facts to make an informed decision.

Some investments offer tax benefits such as reducing assessable income or increasing deductions, but end up being outside the law. You can check with the ATO to ensure promised tax benefits will be available.

Find out as much as you can about an arrangement before investing. Make sure the arrangement has a prospectus or product disclosure statement and get independent advice about the promised tax benefits from a professional advisor. A person associated with the scheme is not independent.

Start by visiting www.ato.gov.au/investing and read the Investigate before investing fact sheet. It provides information about tax effective investing and how to detect potential tax avoidance schemes.

You can also check if the arrangement you’re considering is covered by an ATO product ruling confirming the tax benefits, or if a Taxpayer alert has been issued warning about the arrangement.

Doing your research will help you avoid negative consequences including having to repay tax and incurring interest and penalties.

For more information

Please contact us via telephone or email if you have any questions.

More than 300 000 taxpayers who have already lodged their 2008/9 tax return are still waiting for the ATO to issue their notice of assessment and pay their tax refunds.

This situation is affecting many of our clients who have lodged after 1 January 2010.

Since the the Tax Office installed a new multimillion-dollar computer system to process claims in January, there is a growing list of delays, glitches, errors and problems.

Recent media coverage about the problem:

• Article: Tax Office admits delays with income tax refunds 
• Article: Refunds delayed by new system and Child Support Agency
• Article: ATO sorry your tax refund is overdue

What can we do if you are affected?

If you have lodged your tax return after early January 2010 and have not received your notice of assessment then you may be affected. The ATO will pay interest on all tax refunds that are more than 30 days late if their system is responsible for the delay.

We continue to contact the ATO on behalf of our clients on a regular basis – and through our professional body, the NTAA – provide feedback to the ATO.

These glitches are creating hardships and cashflow problems for some of our clients. Unfortunately, there is very little we can do except process refunds and send out assessment notices as soon as we have received them.

If clients wish to contact the ATO directly, they may do so on 13 28 61 or visit this ATO website for more information.

For more information, please contact us on 08 9246 9055 or send an email to: marmion@prouse.com.au