Tax Practitioners Board – says labour hire firms may be required to register if the client can reasonably expect to rely on their services for tax obligations [77]

The Tax Practitioners Board has released updated information about tax agent services and labour hire firms and service trusts.

The Board says where a service trust or labour hire entity provides services to a client and the client can reasonably be expected to rely upon the service to satisfy their liabilities or obligations or claim entitlements under a taxation law, the service trust or labour hire entity may be providing a tax agent service and be required to register as a tax agent.

Generally, the Board says a service trust or labour hire entity is unlikely to be required to register where there is another registered entity (including a registered individual) which is providing the tax agent service and it is that entity which is directing the services being performed by the personnel provided by the service trust or labour hire entity.

The Board has also released updated information about labour hire firms and service trusts providing BAS services.

[LTN 225, 20/11/13]