A taxpayer who uses a tax agent or BAS agent will benefit from a safe harbour from certain administrative penalties in certain circumstances. Penalties will no longer apply:

• where a false or misleading statement is made carelessly, provided the taxpayer has taken reasonable care to comply with their tax obligations by giving their tax agent or BAS agent the information necessary to make the statement; and
• where a document (such as a return, notice or statement) is not lodged on time in the approved form due to the tax agent’s or BAS agent’s carelessness, provided the taxpayer gave the agent the necessary information, in sufficient time, to lodge the document on time and in the approved form.

For example a taxpayer can apply to the ATO for remission of a FTL penalty imposed in relation to a BAS or other return that was lodged late by their BAS agent.  The ATO can grant a safe harbour exemption from the penalty if the taxpayer can show that they provided their BAS agent with all relevant information in time for the agent to meet the due date.

Similarly, under the second safe harbour feature a taxpayer may not be liable for penalties imposed by the ATO for making a false or misleading statement resulting in a shortfall of tax paid.  This safe harbour exemption may be granted if the statement was made on the taxpayer's behalf by a registered BAS agent, the taxpayer had provided the agent with all relevant information and the agent did not take reasonable care in preparing the statement.

Attached is the Safe Harbour Provisions and the Code of Professional Conduct Information sheet issued by the Tax Practitioners Board.