Terms explained

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

A

B

BAS provision

A BAS provision includes

GST law
wine equalisation tax law
luxury car tax law
fuel tax law
fringe benefits tax law (relating to collection and recovery only)
pay as you go (PAYG) withholding, and
PAYG instalments.

(Subsection 995-1(1) of the Income Tax Assessment Act 1997)

BAS service

A BAS service is any service that relates to:

ascertaining liabilities, obligations or entitlements of an entity that arise, or could arise, under a BAS provision
advising an entity about liabilities, obligations or entitlements of an entity or another entity that arise, or could arise, under a BAS provision, or
representing an entity in their dealings with the Commissioner of Taxation, and
is provided in circumstances where the entity can reasonable be expected to rely on the service for either or both of the following purposes:
to satisfy liabilities or obligations that arise, or could arise, under a BAS provision, or
claim entitlements that arise, or could arise, under a BAS provision.

(Section 90-10 of the Tax Agent Services Act 2009)

Business
Carrying on a business / Not carrying on a business

You ‘carry on a business’ if you provide tax agent or BAS services in your own right, under your own registration number (that is, not on behalf of another registered agent, such as your employer).
You are ‘not carrying on a business’ if you provide tax agent or BAS services on behalf of another registered agent, such as your employer, or you do not charge or receive a fee or other reward.

The Board may accept that competency be demonstrated via a certificate or reference from an agent’s employer or, if they are a contractor, their principal. Also, an agent may be able to provide supporting documentation from a tax agent, BAS agent or other person who is familiar with their work to demonstrate their competency.

If an agent is unable to obtain a certificate or reference from their employer or principal, a submission should be included with the agent’s application for registration, which the Board will consider on its merits.

D

E

F

Fit and proper

In deciding whether an individual is a fit and proper person, the Board must have regard to:

whether the individual is of good fame, integrity and character
whether one of these events occurred, to the individual, during the previous five years:
- convicted of a serious taxation offence
- convicted of an offence involving fraud or dishonesty
- penalised for being a promoter of a tax exploitation scheme
- penalised for implementing a scheme that has been promoted on the basis of conformity with a product ruling in a way that is materially different from that described in the product ruling
- become an undischarged bankrupt or go into external administration
- sentenced to a term of imprisonment
whether the individual had the status of an undischarged bankrupt at any time during the previous five years, and
whether the individual served a term of imprisonment, in whole or in part, at any time during the previous five years

The Board has issued an Exposure Draft on this topic.

(Section 20-15 of the Tax Agent Services Act 2009)

G

H

I

J

K

L

M

N

O

P

Q

R

Reasonable period

The Board is of the view that reasonable period for the purpose of the transitional arrangements for tax agents, means two years or more full time. If an agent has been providing the tax agent service for a period of less than two years full time, a submission should be included with an application for registration, which the Board will consider on its merits.

For the purposes of what constitutes a reasonable period for BAS agents, the Board considers at least 700 hours in the last two years is required. If an agent has been providing the BAS service for a period of less 700 hours, a submission should be included with an application for registration, which the Board will consider on its merits.

Relevant experience

Tax agents

‘Relevant experience’ for tax agents means work by an individual:

as a tax agent registered under the new law or under the old law
under the supervision and control of a tax agent under the new law or under the old law
as an Australian legal practitioners, or
of another kind approved by the Board.

in the course of which the individual’s work has included substantial involvement in one or more types of tax agent services or a particular area of taxation law to which one or more those types of tax agent services include.

If an agent has another kind of ‘relevant experience’, they should make a submission to the Board.

For tax agents, an individual seeking to register through the:

tertiary qualifications in accountancy, tertiary qualifications in another discipline or tertiary qualifications in law options, will need to have engaged in the equivalent of 12 months full-time, relevant experience in the preceding five years
diploma or higher award option will need to have engaged in the equivalent of two years full-time, relevant experience in the preceding five years
work experience or membership of a professional association option must have engaged in the equivalent of eight years full-time, relevant experience in the past 10 years.

Substantial involvement means ample or considerable amount of involvement. It requires more than simply being involved from time to time in the provision of one or more types of tax agent services.

(Item 207 of Part 2, Schedule 2 of the Tax Agent Services Regulations 2009)

BAS agents

‘Relevant experience’ for BAS agents means work by an individual:

as a tax agent or BAS agent registered under the new law
as a tax agent registered under the old law
under the supervision and control of a BAS agent or tax agent registered under the new law
under the supervision and control of a tax agent registered under the old law, or
of another kind approved by the Board

in the course of which the individual’s work has included substantial involvement in one or more types of BAS services.

If an agent has another kind of ‘relevant experience’, they should make a submission to the Board.

For BAS agents, an individual seeking to register through the:

membership of a professional association option will need 1,000 hours of relevant experience in the past three years, or
accounting qualification option, they will need 1,400 hours of relevant experience in the past three years.

Substantial involvement means ample or considerable amount of involvement. It requires more than simply being involved from time to time in the provision of one or more types of BAS services.

(Item 103 of Part 1, Schedule 2 of the Tax Agent Services Regulations 2009)

S

Serious taxation offence

A serious taxation offence is defined in section 90-1 of the Tax Agent Services Act 2009 as

(a) an offence against section 134.1, 134.2, 135.1, 135.2 or 135.4 of the Criminal Code , if the offence relates to a tax liability (within the meaning of the Taxation Administration Act 1953); or

(b) a * taxation offence that is punishable on conviction by a fine exceeding 40 penalty units, or imprisonment, or both.

(Section 90-1 of the Tax Agent Services Act 2009)

Sufficient number of registered individuals

There is no set formula that can be applied for determining the sufficient number of registered individuals that a partnership or company is required to have in order to satisfy this requirement.

The Board recognises that what is a ‘sufficient number of individuals’ will depend on the individual circumstances of the partnership or company and the work they are required to undertake for their clients.
Such factors that will need to be considered are:

the size of the business
the services being offered
the supervisory arrangements in place, and
the conditions that may be imposed on the partnerships registration based on the qualifications and experience of its personnel.

However, knowing the basic requirements for partnerships or companies, of having a sufficient number of registered individuals, the requirement to provide services to a competent standard and to allow for supervision, should enable professionals themselves to determine what is required.

Supervisory arrangements

Supervisory arrangements may be arrangements aimed at directing, overseeing and checking the services performed on behalf of a tax agent to ensure that those services are provided competently. However, whether an agent has appropriate supervisory arrangements in place will be a question of fact to be determined by the Board in particular cases.
The Board will, if necessary, consider the measures taken by an agent to supervise and control relevant activities performed by or on behalf of the agent.

A number of factors may be relevant in determining whether adequate supervisory arrangements are or have been in place. For example:

The nature and frequency of any physical oversight by the agent over the provision of tax agent or BAS services on their behalf
The physical or geographic proximity of the agent to the person carrying out the work
Whether there is substantial supervision, rather than mere checking of documents
Whether the agent performs periodic and spot checks of material prepared by staff
Whether the agent conducts regular audits of work undertaken by staff to ensure the accuracy and completeness of the services provided on behalf of the agent
The degree of control exercised by the agent over the way in which a person carries out their work on behalf of that agent
The level of relevant educational and practical training undertaken by staff performing work on behalf of the agent
Whether there are documented procedures for staff to escalate issues that are beyond their knowledge or experience to an appropriate supervisor.

The Board may provide further information about adequate staffing and supervisory arrangements from time-to-time. However, knowing the basic requirements for partnerships or companies, of having a sufficient number of registered individuals, the requirement to provide services to a competent standard and to allow for supervision, should enable professionals themselves to determine what is required.

Registered individuals may include partners, directors, employees, contractors and staff provided under service trust arrangements.

For more details, see the Board’s information sheet Supervisory arrangements and supervision and control.

T

Tax agent service

A tax agent service is any service that relates to:

ascertaining liabilities, obligations or entitlements of an entity that arise, or could arise, under a taxation law
advising an entity about liabilities, obligations or entitlements of an entity or another entity that arise, or could arise, under a taxation law, or
representing an entity in their dealings with the Commissioner of Taxation, and

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

satisfy liabilities or obligations that arise, or could arise, under a taxation law, or
claim entitlements that arise, or could arise, under a taxation law.

Tax Practitioners Board

Australian Government