If you use an unregistered BAS or tax agent you are taking big risks, as the agent you use may not have the qualifications or experience required of a registered agent, or the appropriate professional indemnity insurance cover.
The Tax Practitioners Board is currently encouraging small-business owners who use a BAS or tax agent to check their agent is registered. Using an unregistered agent is a big risk, so check in with your agent and put your mind at ease.
If you use an unregistered BAS or tax agent you are taking big risks, as the agent you use:
- may not have the qualifications or experience required of a registered agent
- may not have appropriate professional indemnity insurance cover.
Additionally, if they are negligent you will not be protected under the safe harbour provisions set out in the Taxation Administration Act 1953. This could mean you paying an unregistered agent on the premise that you will receive deductions, only to end up having an amended assessment from the ATO that results in you having to pay additional tax and – on top of that – administrative penalties for lodging an incorrect initial tax return.
In such a case you will be liable to pay any additional tax and the penalty fees, and may incur costly legal fees trying to pursue the agent, action that will be more complicated and harder to prosecute due to the agent not being registered.
There are a couple of ways you can check to see if your tax agent is registered:
1) Look for the registered tax practitioners symbol as shown below
2) Search the register at: www.tpb.gov.au/TPB/Finding_and_using_a_practitioner/Search_the_register/tpb/agent_register.aspx
If you find out that your agent is providing tax services without being registered, or you wish to make a complaint about a registered agent, you can do this at the TPB website:
www.tpb.gov.au/TPB/Complaints/0397_Make_a_complaint.aspx
