Why change was requiredBefore the introduction of the Tax Agent Services Regime 2009, there were limited barriers of entry for a contracting bookkeeper. Although the Income Tax Assessment Act 1936 (S251L(6))
[More Information] required bookkeepers to meet certain requirements, this was often unachievable, impractical and predominately igonored by bookkeepers due to minimal government governance.
No nationally recognised standard, minimal government governance and shortfalls in education opened the
"flood gates" to a litany of basic BAS mistakes causing GST revenue leakage estimated in the billions of dollars per annum and a mind-set of
"no-ones watching" from the bookkeeping industry.
These basic mistakes have created a
"whittle effect" on GST revenues that are difficult to detect in a standard financial audit performed by an accountant. These mistakes have left the client unknowingly exposed to high risk of fines and penalties from the ATO. The cause of the mistakes
"no training or inappropriate education set by industry" for bookkeepers. The basic GST mistakes have been validated by the ATO and by respective Offices of State Revenue.
AAPB members are strong advocates for consumer rights and believe government needed to improve the protection for their clients against the Accountants and Bookkeepers making the mistakes. In 2006 AAPB presented to Government and Industry an end-to-end business solution which included an education and quality management program to reduce the risk of errors to consumers and government.
To achieve our objective, AAPB provided submissions and research evidence to support AAPB position to Government however strong obstacles presented by various Accounting Bodies caused delays.
We are now very excited to reach a pinnacle platform, that recognises bookkeepers as an integral part of the system, provides framework for industry to abide by and consumer protection for those who choose to ignore the new regime.
However there is more to go. AAPB believes there are still substantial problems which we have raised with the Assistant Treasurer and Treasury. Until these issues are resolved (for further information refer to AAPB submissions) please ensure you perform the appropriate due diligence when making your decisions.
If you do not perform the appropriate due diligence, you will continue to expose the bookkeeping industry to further scrutiny. Under the new Tax Agents Services Regime 2009, the Tax Practitioners Board (
www.tpb.gov.au) has the authority to deregister BAS Agents and Tax Agents for a period of up to five years.
Traps?
Below is a brief synopsis of some of the areas requiring due diligence.
Education
There are many education providers offering bookkeeper qualifications to meet the registration requirements of the Tax Agents Services Regime 2009.
Be very careful and do not fall for the trap of getting a piece of paper. You now need tax and business management knowledge and skills to keep yourself safe.
Within the Tax Agents Services Act 2009 - The Code of Professional Conduct states:
Competence
(7) You must ensure that a *tax agent service that you provide, or that is provided on your behalf, is provided competently.
(8) You must maintain knowledge and skills relevant to the *tax agent services that you provide.
(9) You must take reasonable care in ascertaining a client's state of affairs, to the extent that ascertaining the state of those affairs is relevant to a statement you are making or a thing you are doing on behalf of the client.
(10) You must take reasonable care to ensure that *taxation laws are applied correctly to the circumstances in relation to which you are providing advice to a client.
Other responsibilities
(11) You must not knowingly obstruct the proper administration of the *taxation laws.
(12) You must advise your client of the client's rights and obligations under the *taxation laws that are materially related to the *tax agent services you provide.
Insurance
Over the years AAPB has uncovered insurance policies that do not provide the full coverage required. Please ensure your policy covers your requirements. All the insurance policies will now need to reflect you as a BAS Agent. Please make sure that all the *tax agents services you provide are covered.
Tax Agents Services Act 2009, Transitional Act 2009 and Regulations
You must now ensure your business meets all of the Tax Agents Services Regime 2009 and that you clearly understand all the definitions and its impact.
Future Costs
Ask your association what the cost of Continuous Professional Development (minimum of 15 hours education per annum) will be in the future.
For more information please contact our office.