A 32-YEAR-OLD DEREGISTERED tax professional from Queensland has been sentenced at the Brisbane District Court to three years jail today for fraudulently obtaining $192,140 from the ATO by lodging false Business Activity Statements (BAS) and amendments without her clients’ knowledge. She was also ordered to pay $158,845 in reparations.

Alana Hodge, a formerly registered (BAS) agent, was employed by seven businesses. Ms Hodge was trusted by these businesses to manage their business tax obligations.

She abused their trust by changing the bank account details and contact information in the ATO business portal. She went on to lodge 47 false BAS for seven of her clients without their knowledge between 2015 and 2017.

Assistant Commissioner Adam Kendrick said that tax and BAS agents play a vital role in contributing to and protecting the integrity of the Australian tax and super systems.

“The ATO knows that the majority of registered agents do the right thing, but unfortunately there are some agents who take advantage of their clients for financial benefit,” Mr Kendrick said.

Ms Hodge attempted to obtain a further $65,056 in GST refunds, however, she was unaware the ATO had already received a tip off from one of her client’s accountants and were already undertaking an investigation into the suspicious activity. The funds were not released.

“As demonstrated in today’s case, even registered tax professionals can be dishonest and take advantage of their clients," Mr Kendrick said. "That is why it’s important for the ATO and Tax Practitioners’ Board (TPB) to work together to maintain the integrity of the tax profession and identify those who try to undermine their trusted position.”

The ATO has a program dedicated to identifying and addressing agents whose behaviour has an immediate and ongoing threat to the integrity of the tax and super systems, their clients, and the wider Australian community.

“We want to assure the community we take these matters seriously and work closely with the TPB to combat dishonest behaviour.”

The TPB terminated Ms Hodge’s registration in October 2018 and banned her for the maximum five-year term.

This matter was prosecuted by the Commonwealth Director of Public Prosecutions.

https://www.tpb.gov.au/make-complaint.

ATO reporting: via the app or by calling 1800 060 062.

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THE House of Representatives Standing Committee on Procedure this week continues its program of public hearings as part of its inquiry into the practices and procedures relating to question time in the House.

Chair of the committee, Ross Vasta said the committee would hear from a panel from the parliamentary press gallery and from former Speaker, Peter Slipper.

"This is an opportunity to explore perceptions of Question Time," Mr Vasta said.

"Hearing different perspectives on Question Time and the role it plays in the parliamentary day will inform our consideration of practices and procedures," said Mr Milton Dick, the Deputy Chair of the committee.

The committee has so far conducted a public survey, received submissions, held public hearings and consulted with current Members. At the conclusion of its inquiry, the Committee will make recommendations to the House for its consideration. Further information about the inquiry is available on the Committee’s website.

Public hearing details

Date: Monday, 27 July 2020
Time: 3pm to 4pm
Location: By teleconference
Witnesses: Parliamentary Press Gallery

Date: Tuesday, 28 July 2020
Time: 2pm to 3pm
Location: by teleconference
Witness: Peter Slipper 

The hearings will be broadcast live at aph.gov.au/live.

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THE Queensland Government should mirror key planks of the Western Australian Government’s COVID-19 recovery plan for the Sunshine State’s own economic revival, Queensland Resources Council chief executive Ian Macfarlane said.

Mr Macfarlane said the WA Recovery Plan, launched by Premier Mark McGowan at the weekend, adopted many recommendations the QRC had already made to the Queensland Government, the Premier’s Queensland Industry Recovery Alliance and the Parliamentary Inquiry into the Government’s response to the COVID-19 recovery.

“The resources industry in Queensland, like WA, has been one of the very few sectors to keep our Queenslanders working and earning.  We have kept the lights on during one of the darkest periods in Queensland’s history,” Mr Macfarlane said.

“Like the industry in WA, the Queensland resources sector needs the State Government to help kick-start new projects with support for exploration, reduced assessment timeframes and exemption for affected mining tenement holders.”

In response to QRC’s 40-point Resource Industry Recovery Agenda, the Palaszczuk Government has increased funding for the Collaborative Exploration Initiative by $10 million.

“For the resources sector to do more, we need the Queensland Government to do more,” Mr Macfarlane said.

Specifically, QRC is seeking:

• Streamlined assessment and approval processes for new and expanded resource projects;
• A 10-year royalty freeze on all resource commodities to provide certainty, particularly for investments in new and expanded projects; and
• An Industry Development Plan with a commitment to work with the sector on its long-term growth and prosperity.

Premier Mark McGowan’s WA Recovery Plan states:

“The mining sector is the backbone of the WA economy and has played an integral part in keeping Western Australia in a strong economic position throughout the pandemic.

"The McGowan Government will continue to support mining exploration to build a pipeline of new activity to complement existing operations.

"Initiatives will include building on the industry’s understanding of the state’s geoscience, encouraging exploration activities and ultimately kick-starting new projects across Western Australia.

"Amendments to mining regulations will reduce assessment timeframes for exploration applications, thereby fast-tracking new opportunities.

"Changes to regulations will also allow mining tenement holders to apply for expenditure exemptions if they are able to demonstrate that the COVID-19 pandemic affected their financial capacity to meet expenditure conditions of their leases.”

Link to the WA Recovery Plan: www.wa.gov.au/sites/default/files/2020-07/WA_Recovery_Plan.pdf

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THE Australian Small Business and Family Enterprise Ombudsman Kate Carnell is reminding small businesses they have until September 7, 2020, to declare any errors in superannuation payments to staff, without facing harsh penalties.

“This applies to the superannuation guarantee amnesty legislation passed from July 1,1992 to March 31, 2018,” Ms Carnell said.

“Small businesses should speak to their trusted, accredited financial advisers now to get their affairs in order before it’s too late. Payment plans are available to small businesses unable to pay the lump sum amount owed, so long as they get on the front foot and make contact with the ATO, before the September 7 deadline.

“However, only payments made before September 7 will be eligible for the tax deduction benefit. To qualify for the amnesty, employers have to come forward voluntarily, without direct prompting from the ATO and agree to pay all employee entitlements plus interest.

“Most small businesses already do the right thing, with 95 percent complying," Ms Carnell said. "The amnesty will give small businesses a chance to ensure they are compliant because all Australian workers deserve to be paid the entitlements they are owed.

“If you don’t disclose unpaid super under the amnesty and you are found to have been non-compliant, you will face a minimum penalty of 100% of the superannuation owed, have to pay $20 administration fee per employee per quarter and you cannot deduct any payments made.”

More information can be found at ato.gov.au/sgamnesty

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