Software Providers who Perform Tax or BAS Services

The Tax Practitioners Board (TPB) has issued an information sheet [TPB(I) 09/2011] which explains when software providers are, or are not, performing tax agent or BAS services.

The following are four examples that it provided where software providers are performing tax agent or BAS services.

1.  A client outsources their entire payroll and accounts work to a software provider. The software provider not only sells the software, but provides an outsourced payroll/accounts processing service using that software. In the provision of this service they interpret and apply a taxation law, which includes a BAS provision, and/or represent the client in their dealings with the Commissioner and it would be reasonable to expect that their client will rely on those services.
2. A software provider configures and customises a software system to deliver a specific tax outcome for their client. The service is provided in circumstances where the client can reasonably be expected to rely on the service for the purposes of satisfying liabilities or obligations or to claim entitlements of the client that arise, or could arise, under a taxation law or BAS provision.
3. A software provider offers a help desk which provides customised advice to assist their client to meet a specific tax outcome. For advice to constitute a tax agent service, the advice would need to relate to the client’s particular circumstances and would require the interpretation of taxation laws or BAS provisions. It must also be reasonable for the client to rely on the advice. If these conditions are met, such advice will be a tax agent service.
4. A software provider offers written tax related advice to their client that is specific to the client’s circumstances. For the written advice to constitute a tax agent service, the advice would need to relate to the client’s particular circumstances and would require the interpretation of taxation laws or a BAS provision. It must also be reasonable to expect the client to rely on the advice.

Ref: TPB Website-Newsroom

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