Rights and Obligations of the Parties under the Taxation Laws
Rights and Obligations of the Parties under the Taxation Laws
Trinity Accounting Practice | Tax Agent No. 78342003
At Trinity Accounting Practice, we believe in transparency, accountability, and keeping our clients well-informed. As your registered tax agent, we are legally required to advise you of both your rights and obligations under Australia’s taxation laws. This page outlines key information relating to the services we provide and the responsibilities shared between our practice and you, our valued client.
Understanding the Self-Assessment System
Australia operates under a self-assessment tax system, meaning that when you lodge your income tax return, the Australian Taxation Office (ATO) accepts your claims at face value and issues an assessment based on that information. However, the ATO reserves the right to review or audit your return later, potentially leading to adjustments.
Your obligations include:
- Providing complete and truthful records.
- Ensuring compliance with taxation laws.
- Maintaining records and substantiating deductions.
Non-compliance can result in penalties, interest charges, audits, and in severe cases, legal action.
Amending Assessments and Penalties
The ATO can amend your tax return up to two years after issuing an assessment (for individuals not in business). If an error is identified, voluntarily disclosing it can reduce any penalties. However, if fraud or evasion is suspected, there is no time limit for amendments.
Your Responsibility to Maintain Records
Taxpayers must retain supporting documentation for deductions:
- Receipts and invoices for work-related expenses.
- Travel diaries for business travel.
- Logbooks for motor vehicle use.
Records must generally be kept for five years. Failure to do so may lead to disallowed deductions and potential penalties.
Providing Complete and Accurate Information
To assist in lodging accurate returns, we require:
- Full and honest disclosure of your income, deductions, and financial activity.
- Timely submission of required records.
If insufficient information is provided, we may be unable to act on your behalf, as we must adhere to the Code of Professional Conduct under the Tax Agent Services Act 2009 (TASA).
If You’re Paid in Cash
Employees paid “cash in hand” should maintain detailed records of income. The ATO may issue default assessments if income appears underreported and proper documentation is missing. We recommend robust record-keeping practices for any undeclared or informal income.
Private Binding Rulings
If uncertainty arises regarding how a tax law applies to your situation, you have the right to request a Private Binding Ruling from the ATO. We can assist in identifying these cases and lodging a request on your behalf.
Your Right to Object
If you disagree with an ATO assessment:
- You can lodge an objection within 2 years of receiving the notice.
- For amended assessments, the objection period is generally 60 days or 2 years from the original notice date, whichever is later.
If unresolved, you may escalate the matter to the Administrative Appeals Tribunal or the Federal Court.
You Carry the Burden of Proof
In any tax dispute, you as the taxpayer bear the burden of proof. It is your responsibility to provide supporting documentation to overturn an ATO decision or prove the correctness of your claims.
Safe Harbour Protection
If you provide us with truthful, complete, and timely information, you may be eligible for safe harbour protection. This can protect you from administrative penalties for errors in your tax return, although tax and interest charges will still apply.
Our Obligations as Registered Tax Agents
Trinity Accounting Practice strictly follows the professional standards and ethics outlined by the Tax Practitioners Board (TPB) under TASA. Our obligations include:
- Acting lawfully, honestly, and in your best interest.
- Identifying and managing conflicts of interest.
- Maintaining confidentiality unless legally obligated to disclose.
- Exercising professional competence and due care.
- Informing you of your rights and obligations.
- Correcting errors and not making false or misleading statements.
- Keeping proper records of all tax services provided.
If a Tax Practitioner Fails to Meet Their Obligations
Failure to comply with the Code may result in:
- Suspension or cancellation of registration.
- Legal orders or financial penalties.
- Enquiries or audits affecting your tax and super affairs.
- Prosecution for criminal conduct.
We're Here to Help
If you ever have questions about your rights, responsibilities, or wish to seek clarification on any part of the tax process, please reach out to us.
📍 159 Stoney Creek Road Beverly Hills NSW 2209
☎️ 02 9543 6804
🌐 www.trinitygroup.com.au
📅 Weekend & after-hours appointments available
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