Conveyancers and the tax agent services regime
Conveyancers may have clients that are impacted by new rules, in place since July 2016, that now apply to vendors disposing of certain taxable Australian property under contracts.
Chair of the Tax Practitioners Board (TPB), Mr Ian Taylor, has advised conveyancers they may need to register with the TPB, when assisting clients to meet new requirements under the foreign resident capital gains tax withholding measures.
Depending on whether a conveyancer’s client is the vendor or purchaser, the following foreign resident capital gains withholding forms may need to be completed and submitted to the ATO:
- clearance certificate
- rate variation application
- purchaser payment notification form.
Mr Taylor said the TPB considers there are sections of each of these forms that involve the provision of a tax agent service. It is also recognised that conveyancers, who perform certain services relating to the purchaser payment form, are exempted from being registered with the TPB as a tax agent until 31 December 2017.
‘Before assisting clients to meet the requirements of the foreign resident capital gains withholding regime, all conveyancers who are not registered with the TPB as tax agents, need to understand what they can or cannot do under the TASA,’ Mr Taylor said.
‘If conveyancers complete and submit these forms to the ATO on behalf of a client for a fee or reward, they may need to be registered with the TPB, either immediately or in the future.’
For further information about whether or not conveyancers need to be registered with the TPB refer to Conveyancing and the TASA.
About the Tax Practitioners Board:
The Tax Practitioners Board regulates tax practitioners in order to protect consumers. The TPB aims to assure the community that tax practitioners meet appropriate standards of professional and ethical conduct.