Are Franchisors Caught By The Tax Agent Services Act 2009 (Cth)? Franchising Focus

Mondaq.com:

Previously, entities that provided a “BAS service” – such as preparation or lodgement of a BAS on behalf of a taxpayer or giving advice about a “BAS provision” – were not required to be registered. However, entities that provide a “BAS service” for a fee or reward will be required to be registered from 1 March 2010. A “BAS service” is defined broadly to mean a tax agent service that:

* relates to ascertaining or advising an entity’s liabilities, obligations or entitlements under a BAS provision, or
* representing an entity in their dealings with the Commissioner of Taxation relating to a BAS provision

in circumstances where the entity can reasonably be expected to rely on the service to satisfy its liabilities or claim an entitlement under a BAS provision.

A “BAS provision” covers matters such as the collection and recovery of tax under FBT law, GST law, wine tax law, luxury car tax or fuel tax law and the PAYG withholding and instalment provisions.

The existing requirement for entities providing “tax agent services” for a fee or reward to be registered will be retained under the new regime. Tax agent services is likewise defined broadly to cover any service that relates to ascertaining or advising an entity as to its liabilities, obligations or entitlements under a taxation law in circumstances where it can reasonably be expected that the entity will rely on the service to satisfy its liabilities or claim an entitlement under a taxation law. Read full article.

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