31/05/2006
New Tax Practitioners Regime
Introductions
The Institute of Certified Bookkeepers,
140000 UK members, has recently been established in Australia specifically to fill a gap in providing a credible professional association and representative body for all bookkeepers in Australia.
The implementation of GST in 2000 brought the role of bookkeepers into the spotlight as a result of the BAS and increasingly highlighted the need for a strong and informed bookkeeper industry. ICB has agreed to act in that capacity in Australia.
While some bodies have played in the bookkeeper area with the development of franchise groups, resource networks for bookkeepers, software consultants/trainers and software bookkeeper groups; the Institute of Certified Bookkeepers (ICB) UK saw that the Australian Bookkeepers needed further experienced systems, standards, professionalism, credibility and assistance to develop a true bookkeeper industry body within Australia.
Statement on behalf of Bookkeepers
ICB understands and shares the concerns of government and the tax office in relation to the preparation of the BAS. We
agree with the direction of government in providing an agenda and resource for a new legislative framework for tax practitioners, and in particular for providing clarity around the area of BAS preparation.
“BAS Service provider”
It would appear that since the implementation of GST “Tax Agents” as defined under the law, are struggling to meet the needs of the community in providing the quantity of services required business. Tax agents are requested to assist business in both interpreting the law and providing reporting to enable businesses to comply with their BAS lodgement obligations.
It is ICB’s position that the development of registered BAS service providers will help
alleviate the burden on tax agents. The BAS service provider should become a level of tax agent able to interpret BAS reporting obligations and instruct business and their officers as to how to complete the BAS. The business then implements those instructions.
What does this mean for bookkeepers?
ICB is assisting with the
definition of the bookkeeper industry by describing representative levels and associated standards of competence.
In ICB’s opinion:
Some bookkeepers will and should become registered BAS service providers. They would have the experience, appropriate education, knowledge and role of assisting business to interpret the BAS reporting obligations and instruct those businesses in the establishment of systems. Those systems correctly account for business transactions to enable completion of the BAS correctly.
The vast majority of bookkeepers will not
become registered BAS service providers. These bookkeepers are still competent and experienced bookkeepers, able to work with business records: reconcile, process, troubleshoot and adjust business accounting records, competent in payroll processing and management. They work with business owners and accountants. They work according to the instructions given by tax agents, accountants and BAS service providers in implementing the systems required.
It is our position that many
businesses rely on bookkeepers to implement the systems
following the interpretation of the experts
.
In short, business owners expect their bookkeeper to do the BAS. The system works best when the experts interpret the law and design the system for the business and their bookkeepers to implement that system. Implementation includes processing of transactions to accounts, allocation of the GST coding of the transaction which leads to the manner those transactions are reported on the BAS.
We believe that bookkeepers must be allowed to continue to implement and operate the accounting systems required under the proposed legislative framework. We believe that this framework must allow for bookkeepers who are not BAS preparers to continue to work under the guidance of tax agents or registered BAS service providers.
We would welcome the opportunity to provide further thoughts or to be involved in the development of the new framework and the regulations that will result from this new system. We are deeply concerned that in an endeavour to regulate the BAS Service Provider that the definition and regulation will extend beyond a practical reality.
Please consider this submission.
Yours faithfully
Matthew Addison
Executive Director
Click here to download a printable copy of this news article
