Financial Abuse and the Tax System: What SMEs Should Know
- Lockwood and Ward
- Oct 3
- 1 min read
Financial abuse is a serious issue that often goes unnoticed in the tax and regulatory system. Regulators and practitioners are now working together to address it.
Recent reports show that one in six women and one in thirteen men have experienced financial abuse by an intimate partner. In many cases, the tax system is misused to create debts in a victim’s name, file fraudulent returns, or take control of bank accounts. These tactics leave victims vulnerable and can cause long-term financial harm.
The Tax Practitioners Board, the Tax Ombudsman, and university tax clinics are collaborating to shine a light on this problem. They are calling on tax professionals to play a role in prevention and detection. Warning signs may include unusual liabilities, imbalances in who attends client meetings, or resistance to providing documentation.
For SMEs, this is a reminder to stay alert. Owners may encounter financial abuse directly, or their employees and clients may be affected. Recognising the warning signs can prevent serious harm and protect both individuals and businesses.
At Lockwood & Ward, we work with clients to ensure transparency and fairness in financial arrangements. If you suspect financial abuse, our team can provide confidential guidance and support.
Contact Lockwood & Ward on (02) 9299 7044 or stop by Level 9, 50 Clarence Street, Sydney NSW 2000.
