Question

sum2proj1: For Australian Tax and BAS
Write a 2,500 word paper explaining the role of the BAS agent—what a tax or BAS agent must do with regard to preparation and lodgement of BAS and IAS forms. Explain what GST is, how the BAS applies and why it is used. In the paper answer these questions: What legislation needs to be complied with and what procedures need to be followed to comply with legislation, regulations and the Code of Professional Conduct? What is a tax agent service? What materials or sources will you use to review, interpret and apply legislation related to taxes reported on activity statements? What reconciliation procedures will you follow? How will you identify lodgement schedule requirements and ensure sufficient funds are available? How will you process accounting data to comply with tax reporting requirements? What payroll activities will be reported on and what reconciliation activities will be involved? What forms will be required and how will the BAS and/or IAS be lodged?

Answer 1

ANSWER;

Business activity statements (BAS)

If you are a business registered for GST you need to lodge a business activity statement (BAS).

Your BAS will help you report and pay your:

• goods and services tax (GST)
• pay as you go (PAYG) instalments
• PAYG withholding tax
• other taxes.

When you register for an Australian business number (ABN) and GST we will automatically send you a BAS when it is time to lodge.

Your BAS is broken up into sections, called 'labels', and you need to fill out different labels depending on how you choose to report and pay.

Find out about:

• Lodging and paying your BAS
• Goods and services tax (GST)
• Pay as you go (PAYG) income tax instalment
• Pay as you go (PAYG) tax withheld
• Fringe benefits tax (FBT) instalment
• Luxury car tax (LCT)
• Wine equalisation tax (WET)
• Fuel tax credits
• Instalment notices for GST and PAYG instalments

  Understand your obligations

  Effective tax governance helps your business comply with tax administration obligations. Operating without required tax registrations or failing to lodge returns on time will attract our attention and potentially expose your business to interest and penalties.

  It's important that you understand your obligations, including any registration and reporting requirements, both for tax and other regulators. Regulatory and tax obligations vary according to the type of entity structure (trust, company, partnership or super fund) you choose.

  Your business should have procedures to capture all tax administration obligations, and review them annually for any changes that impact your business. For tax registrations, effective tax governance processes include:

• annual review of all tax and corporate registrations to identify gaps or lapsed registrations
• comprehensive payroll and superannuation procedures for registering new and departing staff
• defined accountabilities for ensuring registrations are complete
• assistance from a tax adviser for new, complex or unfamiliar registrations.
• What Is Payroll Reconciliation: Reconciliation in accounting involves verifying transactions are in balance and apply to the correct account. For instance, when reconciling payroll, a payroll transaction involves different accounts. If an employee earned $1,500 during a payroll period but only receives $950, the rest of the money would go to such things as taxes, Social Security withholdings, Medicare and insurance deductions. Reconciling that payroll check would involve verifying that all the accounts affected by the payroll transaction agree and total to the gross amount used in calculating the check.