Complete Business Activity and Instalment Activity Statement

CHAPTER 1 | The Business Tax System 33 Instalment Activity Statements The IAS mainly applies to individual taxpayers with investment income (e.g. rental, interest or dividend income) or who have businesses with an annual turnover below the minimum GST registration threshold of $75,000. In addition, some GST-registered businesses must complete a quarterly BAS and a monthly IAS for the months in between. An IAS can be used for the following reporting obligations: ■■ PAYG instalments. ■■ PAYG withholding. ■■ FBT instalments. The ATO forwards personalised statements (both IAS and BAS), via post or the internet, for each tax period with some information pre-completed. 1.4 Providing BAS Services Tax agent service is defined in s 90-5 of the Tax Agent Services Act 2009 (TASA) and BAS agent service is defined in s 90-10(1) of TASA. A BAS agent is permitted to only provide services relating to BAS provisions whereas a tax agent may provide services relating to taxation law. BAS provision is defined in s 995-1 of ITAA 1997 to mean: ■■ The Collection and Recovery of Tax provision in the FBT Act 1986, Pt VII, ■■ The indirect tax law (which means the GST law, the wine tax law, the luxury car tax law or the fuel tax law), and ■■ The Pay As You Go (PAYG) Withholding and Instalment provisions in the Taxation Administration Act 1953 Sch1 Pts 2–5 and 2–10. The following are also included in BAS service: ■■ Ascertaining or advising about the liabilities, obligations or entitlements of a client under a BAS provision, ■■ Representing a client in their dealings with the Commissioner of Taxation in relation to a BAS provision, or ■■ Where it is reasonable to expect a client will rely on the service to satisfy liabilities or obligations to a claim entitlements under a BAS provision. Entering data, paying tax, record keeping functions and other administrative duties are not BAS services. Services provided by a customs broker under the Customs Act 1901 Pt XI , relating to imports or exports are not BAS agent services. Legal practitioners are not required to register if the service is within the their professional legislation and does not consist of preparing or lodging a return or a statement in the nature of a return (TASA, s.50-5(1)(e) and s.50-5(2)(e)).