ATO advocates investment consulting
Before undertaking an investment of any type, it is wise to thoroughly research your options. This is to ensure any financial choices are made with an acceptable and manageable level of risk that minimises any unfortunate surprises.
Particular care needs to be taken with investments that incur taxes, as incorrect management of these can result in financial and legal trouble. Any doubts need to be cleared up before committing, which is where tax agents can come in handy.
The Australian Taxation Office (ATO) released a statement recently that encourages individuals to seek independent advice before joining any financial schemes they are unsure of. The organisation refers especially to 'tax effective schemes', whose promises may be writing cheques they can't cash, literally as well as figuratively.
Another thing to be aware of when considering these investments is that they could simply be a convoluted cover up for illegal tax schemes. If this is the case, the resulting complications can impact more than just your financial stability.
"We see many illegal tax schemes, which are often cleverly 'dressed up' as seemingly legitimate arrangements. These could have impact on your financial security, family and lifestyle," advised Deputy Commissioner at the ATO, Tim Dyce.
The ATO reinforced their commitment to deterring tax and super fraud, and reiterated the importance of considering more than just your finances when engaging with investments or tax schemes.
"Smart investing these days needs to be [about] more than just trusting your instincts," Mr Dyce continued.
"Don't get caught out; make sure you do your research, and get a second opinion from an independent adviser such as a tax agent, financial adviser or us."
Financial professionals such as chartered accountants exist to ensure your investments are kept safe and sound, and operate to the letter of the law.