Warning Against Misleading Tax Advice from Social Media and AI
In light of the upcoming tax return season, Australians are receiving stern warnings about the risks of relying on social media influencers and AI chatbots for tax advice. CPA Australia’s Jenny Wong has highlighted the rising trend of misinformation stemming from platforms like Instagram, Facebook, and TikTok, particularly as individuals seek methods to alleviate financial pressure during the ongoing cost-of-living crisis.
Wong expressed concern over the accuracy of advice circulating online. According to her, many claims made by social media influencers can either be blatantly incorrect or may only apply to select groups of workers, thereby potentially misleading the general public. She cited examples of outrageous claims, including suggestions that individuals can claim expenses for their pets under the pretext that they serve as guard dogs for those working from home, or that luxury handbags could be classified as work-related expenses.
“Some of these claims are an exaggeration and are made for attention rather than providing credible advice,” Wong remarked, urging tax filers to disregard such misleading content. Individuals are often tempted to seek advice from influencers or AI systems like ChatGPT due to the simplicity of these platforms. However, Wong stressed that these sources lack the nuanced understanding required for the complexities of the Australian tax system.
Moreover, relying on this faulty advice could lead to serious consequences. Wong indicated that the Australian Taxation Office (ATO) possesses advanced systems capable of distinguishing between legitimate claims and those which are unfounded. It’s important to realise that any false claims could result in severe repercussions, including financial penalties, a criminal record, or even imprisonment.
An example Wong provided was of farmers, who may indeed claim expenses related to working animals like sheepdogs. However, the idea that a city dweller could do the same for a pet dog is implausible. “Just because someone has garnered a large following online doesn’t make them an authority on tax regulations,” she reiterated, cautioning against the risks of accepting such guidance at face value.
In conclusion, while it may appear convenient to consult influencers or AI platforms regarding tax returns, individuals would be wiser to seek assistance from qualified professionals. Ultimately, the responsibility for accurate tax reporting lies with the taxpayer, and seeking out reliable, informed advice is crucial to avoid unintended legal and financial troubles.
