A recent study conducted on the compliance behaviour of the taxpayers in Australia shows a drastic change. During the last two decades, the relationship of the tax agents and the payers (individuals or businesses) has significantly improved. Examining the different aspects or variables of the taxpayers like the factors that influence the professionals’ role, penalties by Australian Taxation Office (ATO), it has been concluded that the tax agents have an inevitable role and that is why dependency on them is significantly increasing.
Need for Tax Agents
An individual or a business firm needs to hire a professional to look after the taxation for various reasons. To name few of them- lack of available knowledge on lodging the right amount keeping in mind the complexities and the taxation rules/laws; availing the right tax deduction; evading the possibilities of being penalised; and at times, the paucity of time to keep an account on the income and expenses.
Irrespective of the reasons, in Australia, more than three-fourths of the population is represented by the professionals, and hence, have a greater influence on the compliance behaviour of the payers.
Development of the Taxpayers’ Compliance Behavior
According to the recent research, the compliance attitude of the taxpayers towards the professionals exclusively depends on two broad factors. The first one depends on pure economics; the second one deals with the psychological and sociological factors. The tax agent in Sydney from HANSUNG is ascertaining that they cater to every aspect of tax accounting to balance the financial segment of the business or individual for smooth running.
The services from the reliable accounting firms have helped to shape the attitude, norms, and perception of the individual taxpayers. In addition to this, the uncertainty that arose with the compliance behaviour has now wiped out.
Other Factors that Affect the Compliance Nature
Apart from the absence of knowledge, other factors have a greater role in defining the compliance behaviour of Aussie taxpayers. These factors include the demography location, age, education, gender, and occupation.
The role of the professionals has made the taxpayers believe in the system because of the fair calculation of the tax return in Parramatta. Apart from this, what has influenced a lot is the thinking of the tax professionals. They consider their role as a bridge between the payers and the government.
What has Made People to Believe in them?
Obviously their role and the sincerity they have in completing them. Aussies have understood the importance of tax professionals and often hire them for varied reasons. The recent study holds the diversity of the role to be the main factor of the change in the compliance nature of the payers/business firms. The following are the key role that a professional play in the country–
- Independent finance advisor to the clients (individual or small/medium sized business firm)
- A representative of ATO or the Australian government
- Reliable tax advisors
- Dependable part of society helping the payers in evading paying of penalties
From the business perspective, the professionals from HANSUNG have a crucial role to play. They respond to clients’ demand for realistic tax return situations that exclusively depends on the severity of the tax norms and the audit risk.
The all-around services provided by the tax professionals have made the taxpayers believe in the role. This has helped to enhance the compliance nature of the taxpayers significantly.