Question

how does the TASA define a tax agent service and a BAS service?(50-150 words, Australia environment)

Answer 1

BAS service are those services which is relating to ascertaining or advising about the liabilities, obligations or entitlements of a client under a BAS provision or. representing a client in their dealings with the Commissioner of Taxation in relation to a BAS provision.

The TASA also provides that the Tax Practitioners Board may, by legislative instrument, specify that another service is a BAS service. There are significant civil penalties for anyone providing BAS services for a fee or reward, or advertising BAS services, while unregistered.

The legislative instrument allows BAS agents to provide certain services that extend beyond the legislative definition of BAS provision without the requirement to be a registered tax agent. These are :

• Completing and lodging the Taxable payments annual report to the ATO, on behalf of a client
• Determining and reporting the superannuation guarantee shortfall amount and any associated administrative fees
• Applying to the Register for an Australian Business Number, on behalf of a client.
• Sending a tax file number declaration to the Commissioner, on behalf of a client
• Services under the Superannuation Guarantee (Administration) Act 1992 to the extent that they relate to a payroll function or payments to contractors
• Dealing with superannuation payments made through a clearing house

Tax agent services are those services which are relating to ascertaining or advising about liabilities, obligations or entitlements of entities i.e. Clients under a taxation law and representing them in dealing with Commissioners in taxation matters

TASA Provides following Obligations to Tax Agents providing Tax advise Service as a financial adviser & they required to meet such obligations : Namely

1. Compliance with the TASA Code
2. Professional Indemnity Insurance
3. Continued Professional Development (CPD) (registered individuals only)
4. Fitness and propriety
5. The requirement to advise the TPB of changes to your details or circumstances.

The service is provided in circumstances where the client or entity can reasonably be expected to rely on the service for either or both of the following purposes:

1. to satisfy liabilities or obligations that arise, or could arise, under a taxation law;
2. to claim entitlements that arise, or could arise, under a taxation law.