Leo Green conducts business as a Registered Tax Agent. The following occurred in relation to Leo’s client’s affairs for the 2018/19 tax year:

On 26 October, Patty Thomas engaged Leo as her Registered Tax Agent to prepare her 2018/19 income tax return. She has not used the services of a tax agent previously.

On 19 November 2019, Carl Beck has engaged Leo as his Registered Tax Agent to prepare his 2018/19 income tax return. He has previously engaged Kennedy and Associates as his Registered Tax Agent.

On 14 January 2020, Leo received an assessment for Mary Van for a tax return prepared by Leo for 2018/19. The assessment makes Leo aware that he has made an error in estimating her income tax payable. The return lodged was correct.

On 26 May 2019, Leo received a letter requesting further information relating to deductions claimed in the 2017/18 tax return of Trish Bolt. Leo has prepared this return on behalf of Trish. A review of his file records shows that he has left our $8,000 of assessable income resulting in a tax shortfall of $3,200.

For each of the above points, provide Leo with advice as to what action he should take to minimise or prevent any penalties charged to his clients.

Answer rating: 100% (QA)

This is a case study As such the hypothetical facts for each point are to be regarded as true and accurate In the case of Mary Van Leo should give Mar... View the full answer