Message from the Chair
I would like to emphasise that time is running out for potential tax agents to take advantage of the notification option to become registered. This notification option will end on 31 May 2010.
The tax agent services regime regulates a broader range of services than the previous law, including a wider range of sanctions against agents providing services while unregistered, including civil penalties. It is important that entities, including individuals, are aware of the process to become registered.
Below I have outlined the three ways in which a potential tax agent can become registered. Regardless of which of these methods are used, the same outcome is achieved and agents are registered.
I encourage potential tax agents to explore the notification method before time runs out, as it offers the simplest method for registration. To see if you can use this method, look at Special Rule 4 – Transitional notification.
Three options to become a registered tax agent
1. Notify under Special Rule 4 (transitional notification) – option available until 31 May 2010
2. Apply under Special Rule 13 (transitional application) – option available until 31 August 2010
3. Apply under the TASA (standard application) – options are always available
There are some tax agent service providers that are not required to register with the Board. Employees who provide a tax agent service to their employer do not need to register as a tax agent. You may be aware that the Government has recently announced that a limited category of potential agents, which include in-house advisers and custodians, will also be exempt from the regime.
The Board has had enquiries about whether previously unregistered partners, directors and employees of registered tax agent firms can use the transitional notification option. Prior to the commencement of the new regime partnerships and companies had individuals who were not required to be registered.
Under the new law the definition of tax agent services has changed, which means these individuals may now be providing tax agent services as defined under the TASA. These people were not previously required to be registered because relevant services were provided under the firm’s agent registration. However, in these circumstances, the Board will treat such persons within firms, who may have been providing general tax agent services and were not previously required to be registered, as eligible to now notify under Special Rule 4.
The new legislation provides much greater flexibility to include tax agents who specialise in a particular area (see listing below). Specialists now have the option to apply for conditional registration as a tax agent. The transitional registration application option is set out in Special Rule 13. The form to use this option can be found on the Board’s website.
The Board has been informed of or has identified a number of possible categories of specialist agents. These include:
- Australian Financial Services licensee
- BAS services
- FBT consultants
- GST consultants
- Individual tax return preparers
- Other indirect taxes consultants
- Payroll service providers
- Quantity surveyors
- Research and development consultants
- Salary packaging consultants
- Software consultants
- Superannuation advisers
- Transfer pricing advisers
(please note – this list is not all inclusive)
Under the new regime the Board can register agents on a conditional basis where they work in limited areas of tax law. Any conditions imposed need to be relevant to the area of the speciality area nominated. This will limit agents to their specific area of tax law. As a result, the precise form and wording of conditions will vary from nomination to nomination.
I encourage applicants in the first instance, to decide whether they wish to apply for, and are qualified to seek a limited or conditional form of registration. If so, please inform the Board of the area of specialisation when applying.
Our website www.tpb.gov.au is updated regularly to provide the most up to date information on these and other topics.
Dale Boucher
Chair, Tax Practitioners Board
12 May 2010