Is tax-return preparation (or providing tax agent services) a designated service?
By themselves no, including SMSF returns, BAS lodgement, refund handling and tax advice.
None of the following are designated services:
- Preparing your client's tax return (including SMSF returns).
- Receiving your client's tax refund into your trust account and disbursing it to their bank account.
- Preparing and lodging your client's BAS.
- Providing tax advice on the implications of selling their company.
- Applying for an ATO clearance certificate to avoid Foreign Resident Capital Gains Withholding.
These activities don't "directly advance" one of the transactions listed in Table 6 of the AML/CTF Act (sale/purchase/transfer of real estate, sale/purchase/transfer or restructure of a body corporate or legal arrangement, equity/debt financing, etc.). They're administrative or advisory.
The position changes if the same firm also does things like incorporating companies, setting up or restructuring trusts, holding/managing client property as part of a deal, or acting as a director/trustee/nominee shareholder - those are designated services under Table 6.
Source: AUSTRAC, Professional designated services.
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