Do you meet TASA’s Reasonable Care requirements?
Are you sure? Check out this example…
“Jenny provides Alice, her registered agent, with small business software records to prepare her income tax return. The small business software records show a low net profit for Jenny’s business.
“Alice prepares the return from the small business software records. Alice does not question the small business software records or undertake any checks that the income is consistent with industry standards or Jenny’s living expenses. Alice also does not undertake any reconciliation of the small business software records against source documents or BAS returns for the period. Jenny signs a declaration that the return is correct and Alice lodges the return.
“Alice has not taken reasonable care in this case as she has not undertaken any checks to satisfy herself that the records used to prepare Jenny’s return are likely to be correct and complete. Alice has also not properly advised Jenny of her obligation to provide correct and complete records to prepare the return and the possible consequences of not doing so.”
This scenario is a direct quote of Example 9 from the Tax Practitioners Board Exposure Draft, TPB information Sheet, TPB(I) D15/2012 regarding the substantiation of statements made or information provided by the client.
You probably already know that registered Tax and Bas Agents are required to comply with the Tax Agents Services Act 2009 (TASA).
But were you aware that under TASA’s Professional Code of Conduct (Code Item 9 & 10) that you must exercise “reasonable care” in :
BAS Agents are required to understand the client’s affairs and apply tax law correctly. Not sure if you’re a BAS Agent? Visit the Tax Practitioners Board website here.
Tax agents who rely on work performed by a BAS agent need to make their own assessment of how reliable that information is.
It’s now more important than ever to open lines of communication between bookkeepers & accountants
Reasonable care is the core element of the Professional Code Of Conduct. If you don’t understand what your obligations are click here to go to the Tax Practioners Board website for more information.
If you do not take reasonable care in ascertaining a client’s state of affairs or in ensuring that taxation laws are applied correctly, you may breach the Code. You could also be at risk of breaching a civil penalty provision, be subject to fines and risk losing your Tax or BAS Agent registration.
tidytax supports TASA requirements for reasonable care
tidytax helps tax agents ascertain the clients affairs by improving the communication between the accountant, bookkeeper and client.
- tidytax assists tax and bas agents to easily identify whether records are complete and correct
- tidytax helps and inexperienced clients communicate effectively with their bookkeepers and accountants to meet their tax obligations
- tidytax helps tax and BAS agents to uncover the business affairs of new clients
- tidytax helps to safely store source documents that can be used to verify the accuracy of the client’s representations and to gain a better understanding of the disclosures in the clients accounting data file.
- The tidytax benchmarking worksheet assists tax and bas agents to undertake reasonableness checks that the clients results are comparable to others in the same industry
- tidytax provides automated worksheets help the client to summarise the data in organised fashion leaving less room for error
- tidytax provides templates for BAS agents to document how taxation laws have been applied and helps to show that you have a reasonably arguable position for your advice
- tidytax web based resources include a self -review checklist to help BAS agents in identifying bigger picture errors, issues or omissions of information
For more information on how tidytax can help you, follow these links…
- Click here to buy tidytax for business
- Click here to get tidytax for individuals
- Click here if you are an accountant
- Click here if you are a bookkeeper
- Click here if you are an advisor to business
- Click here if you are a business owner