I wrote an article about BAS Agent in Australia. I also understand the rules for hiring BAS Agents. The customer is well protected. If you use a registered agent, you cannot use the provisions of the Safe Harbor Act in legislation. The important point is to know who your accountant is and that accounting firms are BAS agents or tax agents who are prohibited from charging fees for providing BAS Agent services.
So, here’s my take on some of the services that accountants debunk on a regular basis, along with some background info on where those services come from.
How does BAS Agent Work?
Virtually anything you do online sends your data. The difficulty with using a BAS or a tax agent is that you must be notified and given consent if your data is sent abroad. In fact, according to the BAS Agent in Australia, even if your agents use off-site data storage, they must obtain your express consent.
This means they must tell you what information will be disclosed, to whom, and where it will be disclosed. We do this through a signed letter of engagement, which all agents are required to provide and which you should read.
Why Accountants Must be Registered?
If the person or entity receives the fee and is not an employee of the company providing the BAS services, there must be a BAS or registered tax agent performing the services or providing adequate and effective supervision and control of the person performing the services.
BAS Agent in Australia Also Include
Apply for an ABN with the registrar on behalf of the client. Coding tax transactions and invoices for clients and transferring data to computer programs through operations requiring interpretation or implementation of BAS conditions (this means processing transactions involving GST)
- Confirm the data that will appear on the client activity statement
- Complete activity data on behalf of the company or instruct entities which figures to include.
- Confirm the client’s tax withholding requirements for its employees
- Prepare and distribute payment summaries, which may include reported fringe benefits and employer pensions.
Points to Hire BAS Agent Service Provider
- Record GST or PAYG deduction for services under the Pensions Security (Administration) Act 1992, as long as it relates to a payroll function or payments to contractors
- Manage pension payments issued through the clearinghouse
- Preparation and filing of annual reports for taxable ATO payments on behalf of clients
- Submission of a TFN statement to the Commissioner on behalf of the client
So if you hire an accountant to perform GST transactions or pay wages, there must be a BAS agent in the company you pay.
What Do You Know About BAS Agent?
How do you know if a BAS agent is providing proper supervision and oversight? First, determine whether the person you are paying for services is a BAS or a Registered Tax Agent. You can search the registry by clicking here. According to the Council of Tax Practitioners, BAS Agent in Australia and tax agents must ensure that any representation services. They provide or provide on their behalf are qualified.
If the entity sending you the invoice is a corporation or partnership, it must have sufficient registered agents to provide oversight and control. This is difficult to verify. The TPB considers the number of factors to determine whether the BAS or tax agent is actually supervising.
Monitoring Factors
Some of the factors they consider include the true physical location of the person doing the job rather. Then the agent, makes sure the correct paperwork for the job is completed. Makes sure the individual hired to do the job has the appropriate level of education. More information, including actual incidents of oversight and under-monitoring, can be found here.
Why are BAS Services Regulations are Important?
We recently took over a practice with little oversight and the attorney resigned following an investigation by a committee of tax practitioners. In this case, the agent is the sole proprietor. He had been in Canda for at least five years while his operator was in Australia.
They have online worksheets, but TPB argues that because they are not physically in the same state, there is a lack of oversight. This is something that needs to be looked at on an individual basis.
Read More: Accounting and Bookkeeping Services