The rise of artificial intelligence (AI) has brought about a new wave of financial management tools, and bookkeepers are sounding the alarm about the dangers of relying on these platforms for tax advice. According to a recent survey by financial comparison site Compare Club, 17 per cent of Australians are already using AI-powered tools to manage their finances, including seeking advice on how to maximise their tax returns. The Australian Tax Office (ATO) has issued a warning about the risks of relying on open-source AI platforms for tax advice, citing concerns about the accuracy and reliability of the information generated. The ATO’s Warning
The ATO spokesperson told SkyNews.com.au that taxpayers should be cautious when seeking tax advice from new technologies, as there may be risks associated with relying on platforms that are not based in Australia. “While new technologies can improve our lives, there may be risks associated with a number of new platforms offering inaccurate tax advice,” the spokesperson said. Why the ATO is Concerned
The ATO is concerned about the lack of transparency and accountability in the AI-powered platforms that are being used by taxpayers. Many of these platforms are operated by companies based in the United States, which raises concerns about the accuracy and reliability of the information generated. Key Risks
- Accurate information may not be provided
- Information may be outdated or incorrect
- Platform may not be transparent about its methods
- Platform may not be registered with the ATO
What to Do Instead
The ATO recommends that taxpayers seek advice from official sources, such as the ATO website (ato.gov.au) or a registered tax professional. Caution is Advised
Bookkeepers and tax professionals are warning taxpayers to exercise caution when using AI-powered platforms for tax advice. “Self-preparers are particularly prone to using these open-source AI programs and I would recommend using them with caution or not at all,” said Mark Chapman, H&R Block Director of Tax Communications. Expert Advice
Mark Chapman also emphasized the importance of seeking expert advice from a registered tax professional. “Having said that, the use of AI is increasing every year as people try to use it as a shortcut to preparing their tax return but nothing beats getting a human tax expert for some accurate tax advice.”
Examples of AI-Powered Platforms
| ChatGPT | Meta AI | myDeductions | DeepSeek |
| Operated in the United States | Operated in the United States | Powered by AI, but owned by the ATO | Created by Chinese company, High Flyer |
What to Do If You’re Using an AI-Powered Platform
If you’re using an AI-powered platform for tax advice, here are some steps you can take:
* Check the platform’s credentials and ensure it is registered with the ATO
* Verify the accuracy of the information generated
* Seek advice from a registered tax professional if you’re unsure about any aspect of your tax return
Conclusion
The risks associated with relying on AI-powered platforms for tax advice are significant, and bookkeepers and tax professionals are warning taxpayers to exercise caution when using these tools. While AI can be a useful tool for financial management, it’s essential to ensure that the information generated is accurate and reliable. By seeking advice from official sources and exercising caution when using AI-powered platforms, taxpayers can minimize the risks associated with relying on these tools.