This episode is a recast from the Queensland Business Hub talking about audit, accounting and tax compliances for the Mining and Resources industry.
In this episode, Craig Barry and Scott Lindeblad discuss a complex real life client case study which is a cautionary tale of what can happen when adverse events collide with a taxpayer who has been poorly advised.
They explore the profound impact that ill advice and poor estate planning can have for generations to come and unpack what mining and resources professionals can learn from these unfortunate circumstances.
Craig and Scott discuss “Charlie” who worked in the mining industry and was generously rewarded for his many years of hard work and dedication. With his newfound wealth, Charlie began making plans for the future, enlisting the help of a local accountant to make a multi million dollar contribution to his self managed super fund.
Unfortunately, this accountant had little experience dealing with a SMSF and was unfamiliar with the complex laws relating to superannuation contribution caps and taxation. Nor was this accountant familiar with employee share schemes or managing large amounts of money and was ill-prepared to issue a warning about the significant tax and regulatory breaches that would occur.
Rather than leaving a handsome inheritance for his children, Charlie had created a devastating financial legacy that would take years to sort out and cost his estate hundreds of thousands of dollars to resolve.
While this case study focuses on significant superannuation and tax issues, it is a cautionary tale about what can happen when qualified and collaborative advice is not obtained in a timely manner.