CH180180 - Dishonest tax agents: who is a tax agent
A tax agent is defined in the legislation as an individual who, in the course of business, assists other persons (‘clients�) with their tax affairs. A firm or other organisation, whether incorporated or not, cannot be a tax agent for the purposes of this regime. A tax agent may, however, work for an organisation.
»Ê¹ÚÌåÓýapp assistance that the tax agent provides must be given in the course of business. This means that free advice, lectures and work undertaken voluntarily and without payment (‘pro bonoâ€� work) by tax agents are not caught.
Assistance with a client’s tax affairs includes
- advising a client in relation to tax
- acting or purporting to act as agent on behalf of a client in relation to tax
- assisting with any document that we are likely to rely on to determine a person’s tax position, and
- assistance that is given for non-tax purposes, if it is given with the knowledge that it will be, or is likely to be, used by a client in connection with the client’s tax affairs.
An individual can be a tax agent even if they, or the organisation for which they work, are appointed
- indirectly, or
- at the request of someone other than the client.
For example, a tax agent may engage another firm to provide specialist advice on a particular topic.
Sometimes this guidance refers to ‘tax agent� and other times it simply refers to ‘person� or ‘individual�. Different terms are used because the regime applies to tax agents, and former tax agents who, at the time of the misconduct, acted as a tax agent. Information requests and sanctions can also apply to third party document-holders, see CH183320, who may have never been a tax agent and may not be an individual.