A

Australian financial services licensee

An Australian financial services licensee is defined in Chapter 7 of the Corporations Act 2001 as a person who holds a licence under section 913B that authorises a person who carries on a financial services business to provide financial services.

(Chapter 7 of Corporations Act 2001) 

 

Authorised representative

An authorised representative of a financial services licensee is defined in Chapter 7 of the Corporations Act 2001 as a person authorised in accordance with sections 916A or 916B to provide a financial service or financial services on behalf of the licensee.

(Chapter 7 of Corporations Act 2001)

 

 

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

  • 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 

  • representing an entity in their dealings with the Commissioner of Taxation, and

is provided in circumstances where the entity can reasonably 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.

A BAS service also includes a service that the Tax Practitioners Board has declared, by way of a legislative instrument to be a BAS service.

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

 

 

C

Competent standard

Competence, with respect to tax and BAS agents (collectively known as tax practitioners), can be defined as a state of being capable, fitting, suitable or sufficient to provide a tax agent, BAS or tax (financial) advice service.

A tax practitioner will be competent if the tax practitioner possesses such skill, ability and knowledge required to perform a tax agent, BAS or tax (financial) advice service that clients may entrust their taxation affairs to the tax practitioner's care.

Additionally, officers of the Australian Taxation Office (ATO) may rely upon the client returns or other documents prepared by a tax or BAS agent.

Competency should be demonstrated via a certificate or reference from a tax practitioner's employer or, if they are a contractor, their principal. Also, a tax practitioner may be able to provide supporting documentation from a registered tax agent, BAS agent or other person who is familiar with their work to demonstrate their competency.

 

 

F

Fee or other reward

A fee could include among other things, a fixed amount, time-based amount or asset-based amount for the services provided.

A service is provided for a fee even if the fee for the tax agent, BAS or tax (financial) advice service is bundled with other fees for other services.

'Other reward' covers benefits received other than a financial reward, for example:

  • bartering tax agent, BAS or tax (financial) advice services for goods or other services - such as, a bottle of wine or use of a holiday home as recompense for services provided

  • for future benefits (such as future business, sales or commission) to attract or retain clients.

'Fee or other reward' specifically excludes employees (who are unregistered) who provide tax agent, BAS or tax (financial) advice services for a salary, wage or other benefit (such as fringe benefits, commissions, bonuses and incentives paid to employees).

For further information refer to:

 

Fit and proper

In deciding whether an individual is a fit and proper person, we consider:  

  • 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.

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

 

 

Q

Qualified tax relevant provider 

A qualified tax relevant provider (QTRP) has the same meaning as in Part 7.6 of the Corporations Act 2001. This states that a person is a QTRP if:

  1. the person is a relevant provider, and

  2. if a determination is in force under subsection 921BB(1) of the Corporations Act 2001 — the person meets each requirement set out in the determination that is of a kind mentioned in any of paragraphs (a) to (d) of that subsection.

The Corporations (Relevant Providers—Education and Training Standards) Determination 2021 sets out the additional education and training requirements for relevant providers who provide tax (financial) advice services.

A QTRP can legally provide tax (financial) advice services for a fee or other reward.

(Part 7.6 of the Corporations Act 2001) 

Relevant provider 

A relevant provider has the same meaning as in Part 7.6 of the Corporations Act 2001. This states that a person is a relevant provider if the person is an individual and is:

  1. an Australian financial services (AFS) licensee; or

  2. an authorised representative of an AFS licensee; or

  3. an employee or director of an AFS licensee; or

  4. an employee or director of a related body corporate of an AFS licensee; and

  5. is authorised to provide personal advice to retail clients, as the licensee or on behalf of the licensee, in relation to relevant financial products.

(Part 7.6 of the Corporations Act 2001)

 

 

R

Relevant experience

Tax agents 

For tax agents, relevant experience means substantial involvement in tax agent services or a particular area of taxation law undertaken by an individual. ‘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.

Relevant experience can include work: 

  • as a tax agent registered under current or previous law 

  • under the supervision and control of a tax agent registered under current or previous law 

  • as an Australian legal practitioner, or 

  • of another kind approved by us.

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

The amount of relevant experience required of individuals varies depending on qualifications.

(Item 212 of Part 2, Schedule 2 of the Tax Agent Services Regulations 2022) 

Relevant tax (financial) advice experience  

For tax agents providing only tax (financial) advice services, relevant tax (financial) advice experience can include work:

  • as a registered tax agent or under the supervision and control of a registered tax agent

  • as a registered tax (financial) adviser or under the supervision and control of a registered tax (financial) adviser before 1 January 2022

  • as a qualified tax relevant provider (QTRP) or under the supervision and control of a QTRP 

  • as a legal practitioner

  • of another kind approved by the Board.

If an agent has another kind of ‘relevant tax (financial) advice experience’, they should make a submission to us.

The amount of relevant tax (financial) advice experience required of individuals varies depending on qualifications.  

(Item 212 of Part 2, Schedule 2 of the Tax Agent Services Regulations 2022) 

BAS agents

For BAS agents, relevant experience means substantial involvement in BAS services undertaken by an individual. ‘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.

Relevant experience can include work:

  • as a tax agent or BAS agent registered under the current law

  • as a tax agent registered under the previous law

  • under the supervision and control of a BAS agent or tax agent registered under the current law

  • under the supervision and control of a tax agent registered under the previous law, or

  • of another kind approved by us.

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

The amount of relevant experience required of individuals varies depending on qualifications. If seeking to register through the:

  • membership of a professional association option you will need 1,000 hours of relevant experience in the past four years

  • accounting qualification option you will need 1,400 hours of relevant experience in the past four years.

(Item 103 of Part 1, Schedule 2 of the Tax Agent Services Regulations 2022)

 

Registered tax practitioner

A registered tax practitioner is a tax agent or BAS agent registered with the Tax Practitioners Board.

 

Representative

Representative is defined in paragraph 910A(a) of the Corporations Act 2001 to mean:
            representative of a person means:
              (a) if the person is a financial services licensee:
                          (i) an authorised representative of the licensee
                          (ii) an employee or director of the licensee
                          (iii) an employee or director of a related body corporate of the licensee; or
                          (iv) any other person acting on behalf of the licensee.

 

 

S

Serious taxation offence

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

  • 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 

  • 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

A company or partnership seeking registration as a tax or BAS agent will need to meet the 'sufficient number' requirement. 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.

We recognise 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

  • the conditions that may be imposed on the partnership or company 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 practitioner to ensure that those services are provided competently. However, whether a tax practitioner has appropriate supervisory arrangements in place will be a question of fact to be determined by us in particular cases.

We will, if necessary, consider the measures taken by a tax practitioner to supervise and control relevant activities performed by or on behalf of the tax practitioner.

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 tax practitioner over the provision of tax agent (including tax (financial) advice services) or BAS services on their behalf 

  • the physical or geographic proximity of the tax practitioner to the person carrying out the work

  • whether there is substantial supervision, rather than mere checking of documents 

  • whether the tax practitioner performs periodic and spot checks of material prepared by staff 

  • whether the tax practitioner conducts regular audits of work undertaken by staff to ensure the accuracy and completeness of the services provided on their behalf

  • the degree of control exercised by the tax practitioner over the way in which a person carries out the work on their behalf

  • the level of relevant educational and practical training undertaken by staff performing work on behalf of the tax practitioner

  • whether there are documented procedures for staff to escalate issues that are beyond their knowledge or experience to an appropriate supervisor.

We 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.

 

 

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 

  • representing an entity in their dealings with the Commissioner of Taxation, and

is provided in circumstances where the entity can reasonably 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 

  • claim entitlements that arise, or could arise, under a taxation law.

(Section 90-5 of the Tax Agent Services Act 2009) 

 

Taxation law

Taxation law is defined to mean an Act (including a part of an Act) of which the Commissioner has the general administration, or regulations under such an Act. It also includes the Tax Agent Services Act 2009 (TASA) and the Tax Agent Services Regulations 2022 (TASR). 

 

Taxation offence

Taxation offence means: 

  • an offence against a taxation law, or

  • an offence against:

    • section 6 of the Crimes Act 1914 (being an accessory after the fact)

    • section 11.1 of the Criminal Code (attempting to commit an offence)

    • section 11.4 of the Criminal Code (incitement to the commission of an offence), or

    • section 11.5 of the Criminal Code (conspiring with another person to commit an offence). 

 

Tax (financial) advice service

A tax (financial) advice service is any service provided by an Australian financial services licensee (AFS licensee) or their representative in the course of giving advice of a kind usually given by an AFS licensee or their representative 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 the entity or another entity that arise, or could arise under a taxation law, and

is provided in circumstances where the entity can reasonably 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

  • to claim entitlements that arise, or could arise, under a taxation law.

However, a service is not a tax (financial) advice service if it consists of preparing a return or statement in the nature of a return.

A tax (financial) advice service also includes a service that the Tax Practitioners Board has declared, by way of a legislative instrument to be a tax (financial) advice service.

(Section 90-15 of the Tax Agent Services Act 2009)

 

 

Last modified: 4 October 2022