04 – The need for tax warnings in SOAs

ASIC’s guidelines on preparing SOAs make it clear that advisers can advise on strategies which have tax consequences outside their competence. RG 175, which deals generally with issues connected to SOAs, in effect says the SOAs should refer such tax issues to an appropriate third party such as a registered tax agent or a solicitor.

This direction is contained in paragraphs 356 and 357, and reads as follows:

Mandatory disclosure of tax limitation

Dover requires this direction to be in every SOA unless arrangements are made with Dover’s compliance team when the SOA is submitted for pre-client review. For example, if the SOA does contain detailed tax advice then this warning is not appropriate and should not be included in the SOA.

This warning is built into every Dover SOA. It’s part of our mandatory Client Information Policy. This is one of the ways Dover ensures all SOAs are compliant, and one of the ways Dover protects advisers from unrealistic client expectations. 

Once again, it is a mark of a professional  to refer a client to a specialist where this is in the client’s best interests. Smart clients see this a strength, and will trust you even more. They know you have their best interests in mind at all times.

The Dover Group