PWS Advisory Group were approached by a new client requiring taxation services for a number of entities including companies, individuals, trusts and a Self-Managed Superannuation Fund (SMSF). The client previously had another accountant “servicing” their taxation obligations for all their entities but the client felt the previous accountant was not fulfilling their needs.
Once we commenced representing the client, we quickly realised the extent of the damage left by the previous accountant. The tax returns of the SMSF were outstanding for five financial years and the clients ATO General Interest Charge (GIC) and Penalties were escalating rapidly.
The SMSF team had to have a very open and honest conversation with the client and advised of their overdue tax returns. This was a huge surprise to them as their previous accountant was leading them to believe that all their tax obligations were being met. They were paying fees to the previous accountant for services that weren’t being completed and were paying “tax estimates” but no tax returns were being prepared or lodged.
The SMSF team worked diligently and efficiently with the client to have all SMSF tax lodgements prepared and lodged up to date.
The GIC and Penalties amassed an astonishing total just shy of $80,000 by the time we lodged all the SMSF tax returns. The SMSF team worked closely with the ATO, providing them with regular updates on the status of the outstanding tax lodgements. Once all tax returns were lodged, the SMSF team applied to the ATO for a remission request on behalf of our client to have the GIC and Penalties remitted. At first, the ATO didn’t accept our remission request as they wanted further evidence of the clients’ situation. However, we didn’t stop there and accept the ATO’s first answer! The SMSF team regathered, changed our approach and worked with the client to provide the ATO with further evidence supporting our claims against the previous accountant in our second remission request. When the SMSF team submitted a second remission request to the ATO, it wasn’t long before we heard back and we received a result in favour of the client to have ALL GIC and Penalties remitted.
While all this was going on, the client admitted to losing quite a bit of sleep when we informed them about the GIC and Penalties. Once we received a favourable result, the client had an immediate weight lifted off their shoulders and peace of mind that they were now in good hands. The client was tremendously appreciative for all our hard work and has a regained faith in the accounting profession.
Don’t let wrong advice or poor service penalise you. Get the right advice, first time. Contact the PWS team today to find out how we can help you.