BAS Agent - What a Tax or BAS Agent Must Do with Regard to Preparation and Lodgment of BAS and IAS Forms

This report discusses the legislations, procedures, and code of conduct that a BAS agent must comply with while preparing and lodging BAS and IAS forms. It covers the reconciliation procedures, identification of lodgement schedule requirements, and processing of accounting data for tax reporting requirements. The report also highlights the materials and sources used to review, interpret, and apply legislation and the forms required for BAS. The lodging options for BAS and IAS are also discussed.

BAS AGENT - WHAT A
TAX OR BAS AGENT
MUST DO WITH REGARD
TO PREPARATION AND
LODGMENT OF BAS AND
IAS FORMS

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Legislations to be complied by BAS agent..................................................................................3
Procedures to be followed to comply with regulations, legislations and Code of Professional
Conduct........................................................................................................................................4
Tax agent service.........................................................................................................................4
Materials and sources used to review, interpret and apply legislation........................................5
Reconciliation procedures to be followed by tax agent services.................................................5
Identification of lodgement schedule requirements.....................................................................6
Ensuring sufficient availability of fund.......................................................................................6
Processing of accounting data for tax reporting requirements.....................................................7
Reporting of payroll activities.....................................................................................................7
Forms required for BAS...............................................................................................................8
Lodging of BAS or IAS...............................................................................................................9
Project 2...........................................................................................................................................9
Further actions to be taken after preparing draft BAS.................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11
Books and Journals....................................................................................................................11
Online.........................................................................................................................................11

INTRODUCTION
A BAS agent is one who is issued with a licence where it has been stated that they can
advise, provide certainty or act as a representative of a client in front of tax office with regard to
all the matters related to GST, Fuel tax, wine tax, payment of FBT, luxury car tax and many
more services. The present report is based on discussing pertaining to legislations, procedures to
be followed to comply with the applicable legislations, regulations and the code of conduct.
Also, materials & sources that is required to be used for reviewing, interpreting and applying
legislations associated with tax that has been reported on activity statements. Furthermore,
reconciliation procedures, identification of lodgement schedule requirements and many other
related activities with reference to complying with tax reporting. In project 2, actions that are
taken post preparation of draft BAS will be discussed.
MAIN BODY
Legislations to be complied by BAS agent
There are several legislations applicable on tax agent services, such as the following:1. Tax Agent Services Act 2009 (TASA): Under this act, tax practitioners board gets
established which provides for the procedure for the registration & regulations of BAS
agents, tax agents and (financial) tax advisers. It provided for minimum standards and
eligibility criteria (such as educational requirements and experience test) to be met for
being a BAS service provider or BAS agents. Also, a code of professional conduct
defining and governing the ethical standards associated with registered tax practitioner is
also being stated under this act (How to lodge your BAS. 2022). Furthermore, disciplinary
sanctions and civil penalties & conjunctions for tax agents along with a “safe harbour”
for taxpayers is provided under this act.2. Tax Agent Services Regulations 2009 (TASR): Under this act, experience and
qualifications required while registering as a tax agent or BAS agent is being contained
under this act. Also, other requirement for being a BAS agent and application fees to be
paid is mentioned under this act.3. Tax Agent Services Act 2009 (Transitional Provisions & Consequential Amendments):
Under this act, the consequential and transitional matters that may arise as a result of the
enactment of TASA are being mentioned.

4. Tax Laws Amendments Act 2013 (2013 Measures No. 3): Under this act, regulatory
framework has been created for a tax agent services along with the transitional provisions
for getting registered as a tax agent.
Procedures to be followed to comply with regulations, legislations and Code of Professional
Conduct
There are several procedures needed to be followed in order to comply with regulations,
legislations and code of professional conduct, such as the following:
Enhancing the process of client verification for tax practitioners: By doing so, tax and identity
fraud can be avoided to a large extent. It is highly important by being as a tax practitioner to be
vigilant in carrying out necessary processes for identifying a client. This is turn would lead to
minimization of risks associated with identity fraud that could affect tax agent itself, their
practices, government and tax payers. For this POI requirements are in place and by complying
with this appropriate verification can be done of the new or ongoing client.
Keeping client's information as confidential: The information of both ongoing or previous
client must not be disclosed to the third party without having obtained their permission or there is
a legal duty to do so. Failing to comply with this procedure, sanctions would be applicable with
regard to breaching the code and legislative requirements.
Managing Conflicts of interest: It may occur when the tax agent have personal interest with
another party which is causing a conflict while carrying out a duty towards a client as a tax
agent. By having adequate arrangements in place, conflict can be easily managed which is
arising in relation to the activities needed to be performed as a tax agent. Various mechanism
that can be used to manage conflicts involves:
 Avoidance of performing the duty for a client while not being able to manage conflicts.
 By identifying, evaluating and implementing a proper response with regard to the
management of conflicts.
 Disclosure of conflict of interest in front of the client to help them in making informed
decision in a reasonable time.
Tax agent service
A tax agent service is responsible for advising on matters related to liabilities,
entitlements or obligations of an individual or entity that has been arises or could arise due to the
enactment of taxation law. Tax agents providing the tax agent services acts as a representative of

an individual or entity with regard to their dealings with the Australian Taxation Office. The
laws related to taxation involves any Act that is being regulated by the Commissioner of taxation
& the Tax agent services act 2009 which is being regulated by Tax practitioner board.
Tax agents services offers a variety of services which allows for managing matters
related to tax in an easier way and allows an individual and entity to concentrate more on their
business activity rather on tax matters.
Materials and sources used to review, interpret and apply legislation
Tax agents resort to several materials and sources in order to review, interpret and apply
legislation with regard to taxes reported within the activity statements, such as the following:
 To review and interpret the taxes reported in activity statements against various source
documents.
 Before applying any legislations, it is necessary to review and interpret whatever updates
has come over the time in related tax acts or legislations.
 Furthermore, all the source documents must be reviewed to understand what tax credit is
available against what amount has been outstanding against the taxpayers.
Reconciliation procedures to be followed by tax agent services
A tax agent service must reconcile business activity statement in the following ways:
Reconciling bank accounts
 The tax agent must ensure that the bank balance within BAS must be same as the balance
within the accounting software for each and every bank account.
 Checking bank balance within BAS against the bank balances mentioned in the
accounting software of the client.
 Listing out all non-bank transactions that could affect the balance there in the BAS.
 When reporting of GST is done of accrual basis, then the transactions for which unpaid
bills and invoices exists must be reported by entering the same in the BAS.
 Entering all expenses associated with the business that has been paid through other means
Completing your BAS for GST. 2022().
 Recording non-cash adjustments that are supposed to be affecting GST which involves
writing off bad debts, accounting for gift cards or vouchers, etc.
Reconciling GST

 When all non-cash and cash transactions are accounted for and verified, then prior to
lodging BAS, it is necessary to reconcile GST account (Completing your BAS for GST.
2022).
 Publishing all prior period activity statements within the accounting software.
 Identifying GST reporting frequency and running the GST reconciliation report.
 If there were any prior period variances, then the activity statement must be revised for
the offending period or adjusting the same in the next BAS.
 Checking the balance within the Integrated Client Account with the ATO to ensure any
reflection of non-zero balance in the account.
Identification of lodgement schedule requirements
The requirements pertaining to the schedule of lodging tax can be found through the
Australian Taxation Office websites. Further, the due dates for lodging and making payment of
tax is stated on business activity statement. If the due date is falling on a weekend or public
holiday, the lodgement and payment of tax takes place on next business day (TSINDELIANI and
et.al., 2019). The tax or BAS agent helps in lodging activity statements with the tax authorities.
The features within the ATO apps assists in terms of reminding key dates for lodgement through
calendar reminders on phone. As per the lodgement schedule requirements mentioned within the
ATO guidelines, the lodgement and payment of monthly BAS is due on the 21st of the month
post the end of the taxable period.
Ensuring sufficient availability of fund
To meet tax liabilities on time, it is necessary for an individual or entity to have sufficient funds
available in their bank or cash account. This could be ensured through:
 Obtaining timely payments from customers and account receivables.
 Helps the client with financial planning.
 Assists in how they could establish coordination among different business functions.
 Tax agent could perform tax planning through which elements of financial planning are
included within the matters related to tax which helps in delivering maximum efficiency
while paying tax.
 Determining the right time for the client on the basis of various due dates provided by
ATO in lodging and paying tax, so that falling of tax liability could not led to financial
crisis for an individual or entity.

Processing of accounting data for tax reporting requirements
To comply with the tax reporting requirements, there is a need to have appropriate processing of
accounting data, such as the following:
 The processing of accounting data must be done by preparing accounts on the basis of
accounting standards applicable on the local country in order to comply with the tax
reporting requirements.
 Processing of accounting data should be done through software that allows for keeping
tax records and receipts for at least three to five years.
 Employment tax record should be there for the standard duration required for complying
with the tax reporting.
 By using accounting software to process accounting data that facilitate users to file tax
returns electronically.
Reporting of payroll activities
Within the BAS, payroll activities that are reported involves new employee reporting,
record keeping, state & local tax compilation and their payments, pay rates, hours worked, taxes
withheld from salaries and wages of employees, tax contributions made by employer, vacation
balances and overtime accrued. The whole payroll report is being reported within the BAS to
verify tax liabilities and cross-checking financial data. A copy of worksheet containing the
record of payslips and tax computation needed to be reported on.
The activities involved in reconciling payroll are as follows:
 Evaluation of payroll records through payroll ledger provides with the data pertaining to
the payroll activities associated with the relevant period. If the standard total of payroll
ledger is known, then whether the current payroll payments is too high or low can be
determined. When there is a huge difference existing within current payroll system, then
updates made within the payroll are checked such as addition or elimination of
employees.
 Reviewing salaries and pay rates allows for checking promotion granted and bonuses
received which is necessary to ensure correct entry of information.
 Checking the working hours entered within the accounting system: There are many
instances of automatic recording of time and attendance related to employees into the

payroll. If the system does not allow for such automatic entry of working hours served by
employees, then managers or tax agent needs to check accurate completion of time sheets
or time cards which includes overtime as well.
 Ensure that whatever deductions has been made within the payroll processing, it is in an
appropriate manner.
 Integration of accounting software and payroll software allows for automatic completion
of ledger entries and allows for less number of errors.
 Preparing tax reports based on both accounting software and payroll software and
identifying tax liabilities where taxes due must be settled on time.
 Establishing comparison between Payroll activity summary report and activity statement
report determining PAYG withheld and gross reportable wages.
 Identifying non-standard withholding and checking whether PAYG withheld liability
reconciles with the activity statement.
 Paying prior period withholding to the ATO or clearing this outstanding amount by
transferring it to another liability account. Therefore, whatever amount left belongs to the
current period only.
 Accordingly, payroll activity summary will get reconciled with the BAS.
This process will allow for reconciling payroll activities to ensure appropriate record
within the business activity statement.
Forms required for BAS
 BAS A – Quarterly BAS which is a sample document indicating quarterly GST, PAYG
withheld and PAYG income tax obligations (List of approved forms – BAS. 2022).
 BAS C – Quarterly BAS where in addition to the above, individual or combination of
wine equalisation tax, luxury car tax and FBT obligations are also there.
 BAS D meant for partnerships and charities for lodging quarterly GST.
 BAS F meant for partnerships and charities for lodging quarterly GST and PAYG
withheld.
 RBAS to revise BAS or applying for amendments.
Lodging of BAS or IAS
There are several options available for lodging BAS such as the following:

Online lodgement: Here lodgement done online in a quick, secure and easy manner. Tax agent
can perform lodging activities at a time that is convenient to them. Also, there is an additional
availability of two weeks in lodging and paying BAS (Musimenta, 2020). The benefit of getting
faster refund and getting assistance in avoiding mistakes. Individuals and businesses can access
online services through myGov and ATO website in order to manage their tax affairs online.
Lodging through BAS agent: By having a registered BAS agent, one can lodge, vary and pay
their BAS through their own preferred electronic channel. Agent has the right to view their
client's BAS and sent reminders from time to time when the due dates for BAS falls. However,
while having BAS agent, client is still able to access their BAS through online services such as
myGov.
Lodging through mail: By just mailing original and completed BAS by using pre – addressed
enveloped provided within the BAS package. When there are mistakes identified within the
paper BAS, then white – out can be used to make amendments. Mail is not an option in the event
of lodging BAS by using an online channel.
Nothing to be reported or Nil BAS: This service can be used when the business or an
individual doesn't have anything to report and accordingly, lodge their BAS as Nil BAS. This
can be done through online services and by phone calls as well.
Project 2
Further actions to be taken after preparing draft BAS
Further actions involve lodging, paying and getting refund if any extra amount is being
paid towards BAS. This is done on the basis of due dates for lodging and paying BAS which has
been printed at the top and rightmost corner of the BAS.
CONCLUSION
From the above report it has been concluded that BAS is needed to be lodged by those
businesses that are registered for GST. BAS helps in reporting GST, PAYG withheld and other
taxes. While lodging BAS, the entries within activity statement and accounting software are
reconciled together in order to ensure accurate report and complying with tax reporting
requirements in a required manner.

REFERENCES
Books and Journals
Musimenta, D., 2020. Knowledge requirements, tax complexity, compliance costs and tax
compliance in Uganda. Cogent Business & Management, 7(1), p.1812220.
TSINDELIANI, I. A., and et.al., 2019. Main elements of taxation in the conditions of the
development of digital economy. Utopia y praxis latinoamericana, 24(5), pp.129-137.
Online
Completing your BAS for GST. 2022. [Online] Available through
<https://www.ato.gov.au/business/gst/in-detail/managing-gst-in-your-business/reporting,-paying-
and-activity-statements/completing-your-bas-for-gst/>
List of approved forms – BAS. 2022. [Online]. Available through
<https://www.ato.gov.au/forms/consolidated-list-of-approved-forms-by-tax-topic/?page=2>
How to lodge your BAS. 2022. [Online]. Available through
<https://www.ato.gov.au/Business/Business-activity-statements-(BAS)/How-to-pay-your-BAS/>

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