TPB misses no one on tax advice remuneration
The Tax Practitioners Board (TPB) has gone to the trouble of developing guidance documents aimed at Tax (Financial) Advisers defining what represents the delivery of advice on a fee for service or reward basis.
According to TPB chair, Ian Klug said the draft guidance documents were aimed at helping “those who are unsure to determine whether they should be registered with the TPB”.
“There are significant penalties for those providing tax agent or BAS services for a fee or other reward without being registered with the TPB,” he said in a messaging accompanying the guidance documents.
And according to the TPB guidance, the only exception is remuneration received by authorised representatives of tax agents/
The TPB provided the following examples of whether certain transactions and arrangements constitute a fee or other reward for a tax agent with a tax (financial) advice service condition.
The following table contains a non-exhaustive list of the types of transactions and arrangements that may constitute a fee or other reward.
| Transaction/arrangement | Fee | Other reward | |
| 1 | An employee representative provides a tax (financial) advice service, on behalf of, or to, their employer who is a tax agent with a tax (financial) advice condition.[11] | No | No |
| 2 | An entity provides a tax (financial) advice service for a fixed amount. | Yes | No |
| 3 | An entity provides a tax (financial) advice service for a time based amount (for example, an hourly rate). | Yes | No |
| 4 | An entity provides a tax (financial) advice (in the form a statement of advice) together with other services. The entity bundles the fees and charges a single amount to the client for all services. | Yes | No |
| 5 | An entity provides a tax (financial) advice service (in the form of a statement of advice) together with other services. The entity bundles the fees and charges a single amount to the client for all the services. | Yes | No |
| 6 | An entity provides a tax (financial) advice service for an amount, part or all of which is payable via a third party. For example, an authorised representative provides a tax (financial) advice service and receives an amount that has been passed on by their Australian financial services licensee and/or corporate authorised representative (who may or may not retain a portion of that amount). | Yes | No |
| 7 | An entity provides a tax (financial) advice service in exchange for other goods and/or services (non-dollar benefits). This may include, for example, a bottle of wine or use of a holiday home as recompense for advice provided. | No | Yes |
| 8 | An entity provides a tax (financial) advice service in lieu of payment of an existing third party debt, or for a future benefit. | No | Yes |
| 9 | An entity provides a tax (financial) advice service for an amount that is calculated, or to be calculated in the future, based on certain conditions being satisfied or not satisfied. | Yes | No |
| 10 | An entity provides a tax (financial) advice service which consists of tax advice in relation to certain financial products. Upon receipt of this advice, the client invests in the financial products, which triggers a commission payable to the entity.[12] | Yes | No |
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