Question

1/. List and describe three payroll services that must be provided by a registered BAS agent.

2/. List and describe three business services that do not require registration of BAS Agent.

(Please consider its Australian Accounting environment) (Please type up your answers)

Answer 1

1. Payroll services that must be provided by a registered BAS agent:

• A client outsources payroll and accounts work to a payroll service provider :
  The service provider interprets and applies the taxation law for the client (which includes BAS provisions) . He might also represent client in dealings with commisissioner and is expected that client relies on the services rendered.
• Payroll service provider offers help desk that provides advuce to assist clients to meet specific tax outcomes:
  For advice to be regarded as tax agent service it must be related to client's circumstances, interpretation of tax laws and for the client to rely on the services.
• A payroll service provider deals with the Commissioner on behalf of their client:
  For this activity to be considered a tax service , it must involve the service provider to deal with commissioner on behalf of his client on matters related to tax.

2. A payroll service provider does not need to register as a tax agent or BAS agent if:

• The services provided which are "in-house". This includes arrangements where there may be cost recovery or shared service provision.
• Services which are provided without a fee or reward i.e services which are provided for free do not need registeration of BAS agent.
• Services which are not included in the definition of a tax service i.e :
  - data entry
  - coding of transaction based on given set of instructions
  - Payment processing
  - Bank reconcilation prepration
  - determining state obligations / entitlements which can include payroll tax and work cover.