Yes, we are Tax Agents

[depreciator]

We're starting to get clients and accountants asking us if we're Tax Agents.

There was a requirement from the new Tax Practitioners Board that from March 1 all people doing Depreciation Schedules need to be Tax Agents.

It's the first stage of an attempt to weed out some of the dodgy practitioners in our industry.

So we jumped through some perfectly reasonably hoops some months ago and we're now Tax Agents. It doesn't mean we can do tax returns or anything like that, just Depreciation Schedules. So it's business as usual.

Scott

 

[syba]

Whilst from March this year you are required to be a registered 'Tax Agent' to prepare depreciation schedules, be aware that the Tax Practitioners Board have a massive backlog of applications still to process. The Quantity Surveying company I work for (Wilde and Woollard) became a tax agent a few months ago, but many other companies are still waiting.

You should definately ask whether your Quantity Surveyor is a registered Tax Agent. Before you disregard them if they aren't registered, check whether they have applied as they are probably just waiting for their forms to be processed.

 

[Ian (WA)]

The cynic in me is now ROTFLMAO.........I've earlier this year had Depr. Scheds done on three IPs in WA.

The humper who did them (as I've found out only recently) is also a RE agent in the northwest......and if this mandate carries through to WA, he is also going to become a tax agent!!

Foxes in the hen house methinks!!

Will there be any need for a hippocratic oath.....or hypocritical as it may be?

 

[Cazo]

Depreciation Schedules. So it's business as usual.

Scott

Scott, I would just like to acknowledge what a professional service we recently received from your team at Depreciator in arranging a quantity surveyor to do our depreciation schedule over here in Perth.

 

[depreciator]

Thanks Cazo.

It's a national thing, Ian.

The new Tax Agent thing was something that came in mainly to address the proliferation of people doing BAS statements poorly. When the net went through, people doing Depreciation Schedules got caught up. The reason is that we produce a document that people use to do their tax.

I reckon what they're doing is putting a data base together of people doing Depreciation Schedules and then down the track they'll roll their sleeves and say, 'Okay you lot. let's have a look at how you're doing these things.' That's going to be when it gets interesting.

Syba, the big companies are all over this and most are either registered or have registrations pending. But you'd be surprised at the number of small operators who know nothing about it. Or who assume that because they are members of the AIQS they are covered.

The implications for someone getting a Depreciation Schedule from a supplier who is not a Tax Agent? None, I'd say.

The implications for someone doing Depreciation Schedules without being registered? A $17,500 fine. Not that I think there will be many fines handed out - I reckon people will get a phone call and they'll quietly stop doing them.

Scott

 

[dan c]

As Scott says, the new system came in because bookkeepers and other non-agents were preparing - and charging - BAS's for clients. This is against the law, as only tax agents can charge for prep of tax returns and tax advice.

Financial Planners are currently trying to avoid having to register, even though they give tax advice as part of their overall advice.

Unfortunately there are still no recriminations for real estate agents, car dealers or any other sales people who give FREE tax advice (usually wrong) to help their sale.

 

[Neil Richardson]

Syba, the big companies are all over this and most are either registered or have registrations pending. But you'd be surprised at the number of small operators who know nothing about it. Or who assume that because they are members of the AIQS they are covered.
Scott

Scott

As you know, we both sat in on the Webinar early this year. One of us used his real name as he's actually a member of the AIQS

I (Small operator) am also "all over it" and parted with my cheque at that time, which was duly cashed by the ATO/TPB immediately.

I have had one phone call from them since, but alas no registration yet. What are we now, 6 months or more later.

Not an ideal process for sure.