Are Franchisors caught by the Tax Agent Services Act 2009 (Cth)?
Australian franchisors that provide services to assist franchisees with their obligations under GST, FBTand PAYG withholding laws, among others, need to consider whether new laws, to commence 1 March 2010, will require them to be registered as Business Activity Statement (BAS) agents. Previously, entities that provided a “BAS service” – such as preparation or lodgement of a BAS on behalf of a taxpayer or giving advice about a “BAS provision” – were not required to be registered. However, entities that provide a “BAS service” for a fee or reward will be required to be registered from 1 March 2010. A “BAS service” is defined broadly to mean a tax agent service that: • relates to ascertaining or advising an entity’s liabilities, obligations or entitlements under a BAS provision, or • representing an entity in their dealings with the Commissioner of Taxation relating to a BAS provision in circumstances where the entity can reasonably be expected to rely on the service to satisfy its liabil
