25/01/2007
ATO penalises unregistered tax agent
An unregistered tax preparer was convicted and fined a total of $9,300 plus $125.40 in costs for 17 charges of preparing tax returns for a fee, relating to section 251L(1)(a) of the Income Tax Assessment Act 1936. The matter was heard in the Brisbane Magistrates Court in December 2006 and as the defendant did not appear, the case proceeded in his absence.
The defendant, a registered tax agent until 2001, continued to prepare and lodge tax returns for taxpayers after his registration had lapsed.
Evidence gathered by the Tax Office’s Tax Agent Integrity Unit (TAIU) and presented to the court, confirmed the defendant had prepared and lodged numerous tax returns from 2002 through to 2004.
The defendant’s activities came to the attention of the TAIU through taxpayers who claimed that the defendant had prepared and lodged their tax returns for a fee.
The Tax Office is committed to ensuring the integrity of the tax system and will continue to investigate and prosecute unregistered preparers who offer these services for a fee.
Last Modified: Friday, 22 December 2006
What does this mean for bookkeepers?
Obviously the ATO remains concerned about unlicensed / unqualified people doing work which they are not permitted to under the legislation.
Mostly this effects bookkeepers in the area of helping a business prepare the BAS and the related GST laws.
The legal position remains that bookkeepers (Unless you are also a member of a Recognised Professional Association (which are 7 of the Association for Accountants) or a registered Tax Agent) should NOT interpret GST law and advise a client on such matters. A bookkeeper (unless one of the above) should not assist a client to prepare the BAS for a business.
NOTE: You are allowed to use commercially available accounting software to produce a report from that software that enables your client to prepare the BAS.
Again I ask: What does this mean for bookkeepers?
1) Don’t give advice you are not specifically qualified and licensed to give.
2) Facilitate the client asking the right question of the right advisors
3) Do bookkeeping work: code transaction, do accounts, print reports, implement instructions and procedures to help a business do their books
4) Don’t give GST advice about how that business should be interpreting GST or their BAS obligations
GOING FORWARD
We know that the ATO and Treasury are working on it. The only public information on what this means remains the budget statements by the assistant treasurer. Having said that, know that the Institute of Certified Bookkeepers is involved in discussions and making submissions to Government on these matters. The ICB is involved with other bookkeeping industry bodies in discussions and assisting forming the best answers for the future of bookkeepers and business.
