The carve-out for financial advisers under the Tax Agents Services Act 2009 ("TASA") will cease in its current form as of 1 July 2014.
TASA Part 1: Where does it apply?
We've come up with a 6 letter acronym to assist in working out whether TASA applies to you: Introducing the FAT LEO Test.
- Financial Adviser who:
- Ascertains/advises on
- Taxation:
- Liabilities; or
- Entitlements; or
- Obligations.
If you are a licensed financial adviser who provides a service that advises on, or ascertains liabilities, entitlements or obligations under taxation law, you are likely to be providing a tax (financial) advice service and be caught by TASA.
You are not considered to be providing a tax (financial) advice service if you are preparing a return, or statement in the nature of a return. However, you can only lodge returns or deal with the ATO on behalf of a client if you are a "full" tax agent.
Currently, advisers can provide a tax (financial) advice service to clients with the use of a prescribed disclaimer. As of 1 July 2014, the wording of this disclaimer changes and the transitional arrangements begin.
AFSL holders and Authorised Representatives who have been providing a tax (financial) advice service prior to 1 July 2014 will be able to notify the Tax Practitioners Board of this and receive "deemed" registration to provide taxation advice in the context of providing financial services for up to 3.5 years.
In our next blog, TASA Part II, we will look at the transitional arrangements in more detail and provide our tips on preparing for 1 July 2014.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
