| Restrictions on Bookkeepers Providing Business Activity Statement Services |
| The Australian Taxation Office (ATO) has recently outlined its stance on bookkeepers and the services they can and cannot offer. Bookkeepers cannot charge a client a fee for the provision of tax services. |
However, they may charge for the provision of Business Activity Statements (BAS) related services if they are (a) fully qualified members of a recognised professional association; (b) working under the direction of a registered tax agent; or (c) payroll services providers preparing a BAS only for PAYG withholding obligations.
It is the usual practice for those providing total bookkeeping services to refrain from charging clients a separate fee for the provision of BAS assistance. The ATO stresses that by providing such a service, bookkeepers will have nevertheless committed an offence. This is due to the ATO?s view that the fee charged for a total bookkeeping service includes the fee for the preparation of a BAS. The ATO emphasises that this prohibition not only covers the actual preparation of a BAS, but also the provision of advice to a client on how to prepare a BAS.
According to the ATO bookkeepers who fail to meet the above criteria are only able to provide accounting services or risk prosecution and fines of up to $22,000.
6th-May-2004 |
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