Taxpayers are increasingly turning to unreliable sources for tax advice as the 2024-25 financial year draws to a close.
CPA Australia is warning taxpayers to beware of misleading tax information, urging them to consult professionals rather than dubious online sources.
AI tax misinformation
AI platforms like ChatGPT are growing in popularity, with taxpayers and businesses relying on them for tax advice. This presents a significant risk, as the information provided by these platforms cannot always be relied upon.
AI search tools compile data based on publicly available online search results, making them useful resources for general research. However, the results will vary heavily depending on the prompt input. If a taxpayer inputs a prompt with incorrect or incomplete information, it is unlikely that the information provided will be reliable.
The Australian taxation system is also heavily nuanced, with many intricacies that take into account the unique circumstances of taxpayers. Even with effective prompting, there are far too many variables for these platforms to reliably provide accurate personalised tax advice.
Finance influencers
Social media and influencer culture are also exposing Australian taxpayers to misinformation. CPA Australia Tax Lead Jenny Wong is concerned that many taxpayers are relying on social media for tax advice.
“In many cases the advice from these accounts is simply wrong. In other cases, the claims have an ounce of truth but would apply only to a very small group of workers,” she says.
“Having a large following on TikTok doesn’t automatically make someone an expert on a particular subject, especially one as complex as the Australian tax system.”
Risks of non-compliance
By relying on dubious tax advice or tax misinformation, taxpayers are exposing themselves to an increased risk of error. This carries the potential for financial and possible legal penalties depending on the severity of the error.
“Exaggerating a claim can have consequences. Making false tax claims could result in hefty fines, a criminal record or even imprisonment. Arguing that you took advice from a finance influencer on TikTok won’t cut it – your tax is your responsibility,” Wong says.
The burden of accuracy always rests on the taxpayer, so it is imperative to seek reliable advice from a professional tax agent. Optima Partners’ team of experienced tax accountants can provide personalised advice to ensure you get the most of your tax return.
