Is My Accountant dishonest?

Hi

My accountant has been try to make money out of me every possible way for the last 6-8 months.
He said I can apply for a govt grant, (I didn't carefully read the criteria) but I was turned down. Once I was turned down I went through the criteria and it was clear I was not going to get it based on clear GST/BAS requirements which he should have known.

I asked him to apply for Jobkeeper - since then he's been charging me fees every month to keep the Jobkeeper alive and report to ATO. This might be acceptable, but he charged me these fees suddenly for the last 6 months, and took the opporunity to raise the BAS fee from 100 to 150.

Now, it is quite clear to me that I will not qualify for JobKeeper 2 (mind you I'm not an accountant) based on ATO guidelines of 30% actual turnover reduction but he's asked me if I want to apply for JobKeeper 2.

When I asked him asked him whether it was still worth applying based on the fact that compard to same period last year, this year's turnover is not 30% less, he's just said, you decide and let me know. I thought an honest accoutant would advise me. Seems like he just wants the $150 JobKeeper application fee from me, knowing it will be rejected?

Am I reading into things the wrong way? What you ppl suggest?

 

Dear Simon,
Given that you have time on your hands,
perhaps you would be better off doing these things yourself?
I hope this helps and things get better for you.

 

doesn't sound dishonest. maybe he should have been clear of the charges involved in doing the monthly jobkeeper declaration. I have been charging my clients to do the declaration and not one has had an issue. But i have told them the costs involved.

Since jobkeeper has only been going for about six months then the fee increasing is understandable. But again should have been communicated to you.

For Jobkeeper V2.0 businesses already enrolled in JobKeeper, to receive payments from 28 September 2020, you need to meet an extended decline in turnover test based on actual GST turnover.

For 28 Sept 2020 to 3 January 2021 the basic test is Actual GST turnover in the September 2020 quarter (July, August & September) fell by at least 30% (15% for ACNC-registered charities, 50% for large businesses) compared to the same period in 2019.

When applying the new turnover reduction tests for the September 2020 quarter and December 2020 quarter, entities that are registered for GST must use the same method that is used for GST reporting purposes. That is, if the entity is registered for GST on a cash basis then a cash basis needs to be used to calculate current GST turnover for the purpose of these new tests. Entities that are not registered for GST can choose whether to calculate GST turnover using a cash or accruals basis, but must use a consistent method.

Current GST turnover includes proceeds from the sale of capital assets, unless the sale is input taxed. Current GST turnover includes taxable and GST-free supplies, but should exclude input taxed supplies such as residential rental income and financial supplies like dividends, interest etc. JobKeeper and ATO cash flow boost payments should be excluded from the calculation along with other payments that don’t represent consideration for a supply made by the entity such as certain State based grants.

 

Correct. Backdating arrears of fees is a poor way to deal with client affairs. The amount of work and complexity means some degree of automation in emails and communiaction is needed. It may be coming across the wrong way when these messages are just prompts due to very strict rules and very strict deadlines.

 

Thanks for the reply. In this case my accountant knows for sure that I don't meet this test since my GST has not declined by 30%. Shouldn't an honest accountant advise me that since I don't meet the criteria, me getting the Jobkeeper 2.0 is very unlikely?

 

He would only be facilitating the declaration as your agent. He wouldnt be permitted to falsely make the declaration. And would largely be wasting their own time. How can they then bill you for that ? No application means no fee doesnt it ? You know you arent eligible so that should be the end of the matter. You may be reading too much into this.

 

I don't understand. If you are having issues with your accountant, change accountants.

 

I just assisted a client with JK2 declarations and retesting and on initial review it appeared they could have been eligible. But on more in depth review they failed. The inverse is also possible that some may conclude they fail the tests. If the client has performed the test themself they may have got it horribly wrong and been liable to repay the excess ($7800 per employee) or miss out on $7800 per employee. The new JK2 enrolment seems to have some questions which may need some technical knowledge and care in using or rejecting the data that is prefilled and its used and the explanations needed.

 

Is changing accountant an easy process? Sorry I’m not very educated in these matters?

will a new accountant have all my records from previous accountant?

 

No. You can obtain this. And provide it. Easy to do. Why be hostage?

 

Your records are YOUR records. Do you think everybody just stays with the same accountant their whole lives, good or bad?

 

Yes ,once the new Accountant opens up the ATO's site then everything will be there,or just take your last tax return with you as you walk in the Accountant office..good luck..

 

Yes, thats what I would do

Painful process, having to do this

 

it is very important as well to look at the Alternative Tests if you fail the basic test. One that seems to be particularly relevant is the "The Entity has had a Substantial Increase in Turnover". This test is quite complex and I have a spreadsheet which determines eligibility based on this test but for reference Actual decline in turnover test

 

And keep records of your turnover calculations for eligibility to ensure you can support your position if later queried / challenged.