| . |
| Tax Agents |
|
|
|
Company registration
Academic qualifications and work experience The Tax Agents’ Board in each State sets out minimum requirements for registration as a tax agent with regard to: Academic qualifications and Work experience Academic qualifications The applicant must have successfully completed the academic requirements for the award of degree, diploma or other qualification from:
and completed a course which the Tax Agents’ Board certifies to represent a course of study in accountancy Note that a pass in Australian Income Tax Law or its equivalents is required Work experience The applicant must have been engaged in employment in which there has been a substantial involvement in income tax matters including:
An agent who has had their registration cancelled or suspended may appeal against the decision to the Administrative Appeals Tribunal (AAT) - s.251QA ITAA36 An agent who has had their application for registration (or re-registration) refused by the Tax Agents' Board may also appeal against the decision to the AAT - s.251QB ITAA36 |
| Definition |
|
Registration Initial registration An individual, company or partnership wishing to be registered as a tax agent must apply to the Tax Agents' Board in the relevant state – s.251J(1) ITAA36 Registration comes into force on the day that it is granted for a period of three years Individual registration Individual applicants must satisfy the Tax Agents' Board that they are fit and proper persons to prepare income tax returns and to transact tax related business on behalf of the taxpayer s.251BC ITAA36 deems a person not to be a fit and proper person to be registered as a tax agent if any of the following disqualifying factors apply:
Partnership registration
Tax agents must apply for re-registration every 3 years – s.251JG(1) ITAA36 Re-registration requirements are generally the same as for initial registration - s.251JC ITAA36 Rights and Duties of tax agents Charging of Fees Only registered tax agents (or a person exempted from registration) may charge a fee for the preparation of income tax returns or transacting business for a taxpayer in any income tax matter Advertising Under s.251O ITAA36 it is an offence for a person, other than those described in s.251L ITAA36, to describe themself as a tax agent or to advertise their willingness to prepare tax returns or to deal with any other income tax matters Supervision of employees An offence is committed if a registered tax agent allows any person, other than an employee, a registered tax agent or a partner to prepare income tax returns or objections or conduct any tax business on the agent's behalf Tax work performed by a partnership or company tax agent must be carried out under the supervision and control of a registered nominee Liability of tax agents Negligence If a client becomes liable to pay a fine, penalty, additional tax, Shortfall Interest Charge (SIC) or General Interest Charge (GIC) because of the negligence of a tax agent, then the agent is obliged to reimburse the client for the amount of that fine, penalty or interest - s.251M ITAA36 In addition, the client may recover the amount of any fine or penalty under common law by suing the tax agent for negligence or breach of contract to recover damages in excess of the additional tax The fact that the tax agent has been negligent does not relieve the client of the liability to pay any fine or penalty. The taxpayer must first pay it and then recover the amount from the tax agent Cessation of registration Tax agent registration may cease permanently or temporarily thorough:
|
|
|