Your group has formed an Accounting Practice business partnership. Your area of expertise is in Income Tax matters in Australia. Jonathan is one of your clients and he has come to see you seeking advice on how to minimize his tax. You explain to Jonathan of the many ways in which to reduce his tax liability. Jonathan is most impressed by what you have told him and he pays a fee for your professional advice and then carries out your suggestions on tax minimisation. Unfortunately, you have misread the tax legislation and as a result Jonathan is audited by the Australian Taxation Office who then issues him with a tax liability of $600,000.00 plus interest.
Your group has formed an Accounting Practice business partnership. Your area of expertise is in Income Tax matters in Australia.
Jonathan is one of your clients and he has come to see you seeking advice on how to minimize his tax.
You explain to Jonathan of the many ways in which to reduce his tax liability. Jonathan is most impressed by what you have told him and he pays a fee for your professional advice and then carries out your suggestions on tax minimisation.
Unfortunately, you have misread the tax legislation and as a result Jonathan is audited by the Australian
Discuss what the consequences are to your group for giving Jonathan bad advice.
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