Question

iii. Charging of Fees: Advanced Accounting Service Pty Ltd planning to register as a tax agent and provides taxation service to its clients. a) Can Advanced Accounting Service Pty Ltd start charging fees if they provide any client service now? b) What section of TAS act this can be referred to? (REF: s.50-5TAS Act)

Answer 1

Tax agent services are services relating to:

• ascertaining (that is, working out) or advising about liabilities, obligations or entitlements of entities (that is your clients) under a taxation law
• representing entities in their dealings with the Commissioner of Taxation (Commissioner) in relation to a taxation law
• where it is reasonable to expect the entity will rely on the service to satisfy liabilities or obligations, or to claim entitlements under a taxation law.

There is a legal requirement that you must not charge or receive a fee or other reward if you provide a service which you know or should reasonably know is a tax agent service and you are not a registered tax agent. A similar requirement applies to lawyers preparing or lodging tax returns, they too must register. These registration requirements are not part of the definition of tax agent services, but are set out in section 50-5 of the Tax Agent Services Act 2009 (TASA).

A) There fore Advanced Accounting Service Pty Ltd is not eligible to charge untill the company is registered

B) Section 50-5 which is mentioned above refers this kind of restriction