Question

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. (AUSTRALIAN TAX)

Explain what GST is, how the BAS applies and why it is used.

In the paper answer these questions:

1. 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?

2. What is a tax agent service?

3. What materials or sources will you use to review, interpret and apply legislation related to taxes reported on activity statements?

4. What reconciliation procedures will you follow?

5. How will you identify lodgement schedule requirements and ensure sufficient funds are available?

6. How will you process accounting data to comply with tax reporting requirements?

7. What payroll activities will be reported on and what reconciliation activities will be involved?

8. What forms will be required and how will the BAS and/or IAS be lodged?

Answer 1

BAS agents can advise, ascertain (provide certainty) and represent a client to the commissioner on BAS services which means they can:

• Design a system, in respect to business and the BAS provisions
• Advise a business, in respect to business and the BAS provisions
• Do everything a bookkeeper can do
• Review reports to verify their accuracy for the correct application of BAS provisions (GST, WET, LCT, FTC, PAYG W, SGC, TPAR and the payment of PAYG I and the payment of FBT instalments)

They can't:

• Advise, ascertain and represent a client to the commissioner in other tax matters
• They cannot interpret the income tax provisions and advise a client how that is to apply to them (they can implement advice or a system prescribed by either the external tax agent or maybe the business themselves but not if the business “relies” on them for the advice and certainty

The goods and services tax (GST) in Australia is a value added tax of 10% on most goods and services sales, with some exemptions (such as for certain food, healthcare and housing items) and concessions (including qualifying long term accommodation which is taxed at an effective rate of 5.5%). Registered enterprises for GST must complete a Business Activity Statement (BAS) for reporting to the Australian Taxation Office for each quarter ending March, June, September and December. Businesses must lodge their Statements with the ATO within twenty working days of the end of each quarter.

1. Section 30-10 of the TASA establishes the legislated Code for registered tax practitioners. The Code sets out the professional and ethical standards required of registered tax practitioners. This section also outlines the duties that registered tax practitioners owe their clients, the TPB and other registered tax practitioners.