Facing prosecution: Aussies warned against taking ‘Finfluncer advice’

Taxpayers are being warned just because someone has a large following, it doesn’t make them a tax expert, with TikTok “Finfluencers” and AI being called out ahead of the end of financial year.

With tax season approaching, the accounting industry body warns of the pitfalls of getting free advice from social media platforms, noting Aussies face big fines and prosecution if they falsify their tax return.

CPA Australia tax lead Jenny Wong, said it’s concerning many Aussies will watch this content and assume they are getting free expert 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 said.

According to Ms Wong, getting bad tax advice could result in missing out on legitimate entitlements or worst still, big fines and even prosecution.

CPA Australia took aim at some of the TikTok users’ advice, including claiming a pet as a ‘guard dog” while working from home.

Another claimed they can deduct the cost of a luxury handbag by telling the ATO it is used as a work bag, while a third told Australians they can claim thousands in fuel rebates without a receipt.

“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,” she said.

Ms Wong also warned ChatGPT and other OpenAI tools which should also be treated with caution.

“Nothing can beat the sound advice of a professional tax agent,” she said.

“AI tools are only as good as the information you put into them. It may be tempting to ask AI bots for tips, but they are simply not able to compute the nuances of the Australian tax system or your specific circumstances.”

Instead of relying on tax tips online Ms Wong offers:

• Be thorough: Take time to gather your receipts, logbooks and any other evidence to support your work-related expense claims.
• Check what type of expenses you could claim that are relevant to your work. The ATO has a comprehensive guide to industry and occupation types.
• Time is on your side: You have until June 30 to purchase any items you need for work and can claim the deductions this year.
• Don’t rush: Lodging your tax return early does not mean you’ll get your refund first, but could mean you make mistakes.
• Remember: the cost of seeking professional tax advice for your tax return is tax deductible.