A lawyer can help you manage your compliance obligations under Australian taxation law. For individuals with simple tax affairs such as a salary and some basic interest income there may be no benefit in involving a tax lawyer. This depends on your particular situation. A tax lawyer is usually of the most assistance when there are more complex tax issues involved. For example seeking tax advice may be appropriate when:

• you are involved in contract negotiations;
• you have multiple streams of income;
• you have a family owned businesses that employs and pays a salary to family members;
• you have been given a distribution from a family trust; or
• you need to set up and maintain assets such as real property or investments in a tax effective manner.

Tax compliance can also be more complicated when there are multiple sources of income such as investment income, foreign income or trust distributions. A tax lawyer can:

• provide advice on how to minimise tax on your combined income streams;
• review your tax affairs to ensure that all tax compliance obligations are satisfied;
• highlight the potential pitfalls and common problems associated with multiple income streams; and
• advise you about structuring your finances, debts and investments in ways that are tax effective.

Tax planning opportunities are constantly changing. The opportunities will vary depending on your particular circumstances. Seeking tax advice and making sure you understand what is appropriate can assist you to identify the opportunities and avoid negative consequences such as:

• penalties;
• additional tax;
• interest; and
• the risk of criminal prosecution in circumstances where there is tax evasion or fraud.

A tax lawyer can also represent you in dealings with the Australian Taxation Office (ATO) by:

• liaising with the ATO to resolve any disputes over your taxation liability;
• representing you in any dispute hearings with the ATO;
• developing and presenting the correct legal arguments to defend any charges or penalties laid against you; and
• preparing you for litigation in the event this is required.

If you are concerned that your circumstances place you in an unusual or novel taxation situation you can apply for a private ruling from the tax office. A tax professional or lawyer can assist you with an application for a tax ruling and provide advice on whether this is a suitable choice in your circumstances.