Business owners are being warned to ensure their tax agent is properly registered, after a staggering number of advisers failed to renew their registration last month.
Ian Taylor, chair of the Tax Practitioners Board (TPB), said that of the 2,748 registered tax (financial) advisers who were due to renew their registration in July, more than a quarter – 27 per cent – had failed to do so.
The problem looks set to get worse, with 14,400 advisers approaching their registration renewal date, some as soon as this October.
“Failing to submit a renewal application by the expiry date means the registration expires,’ Mr Taylor said.
“Under the Tax Agent Services Act 2009 (TASA), if you are providing a tax (financial) advice service for a fee or other reward, you must be registered with the TPB to be able to legally provide that service,” he said.
However, a spokesperson for TPB told My Business there is no risk to business tax returns and BAS statements, given advisers can only advise on tax matters, not lodge tax documents.
“Tax (financial) advisers cannot deal with the Commissioner of Taxation on behalf of a client. Only registered tax agents can prepare and lodge returns for a fee or other reward,” the spokesperson said.
Business owners can check that their adviser is currently registered to provide advice by checking the TPB Register.
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.