Media and information
releases
IR 04-68 ASIC
issues guidance on the provision of tax
advice
Wednesday 15
December 2004
The Australian
Securities and Investments Commission (ASIC) today issued guidance
about the application of the Corporations Act to people who provide
taxation related advice.
The guidance
is given in the form of answers to two new frequently asked
questions (FAQs):
- 'Do I need an AFS licence to provide tax
advice?' (QFS 149): and
- 'I am a financial
planner. What particular requirements apply to me under the
Corporations Act when I give advice about the tax implications of
financial products?' (QFS
153).
Mr Mark Adams, ASIC Director
Regulatory Policy, said the FAQs should help taxation advisers and
financial planners understand some of the compliance obligations
that apply under the Corporations Act.
'QFS 149 explains when a taxation adviser requires an
Australian financial services licence while QFS 153 provides
guidance about how licensed advisers who do need to consider
taxation issues can comply with their obligation to provide
appropriate financial product advice', Mr Adams
said.
ASIC foreshadowed the issue of
this guidance in a joint release with the Australian Tax Office
issued in December 2003 (see Media Release 03-419: ASIC and ATO team up on advice guidance). ASIC notes the ATO is considering comments on its
draft determination, TD 2004/D22: 'Income
tax: does paragraph 251L(1)(b) of the Income Tax Assessment Act 1936
prevent persons other than registered tax agents from giving advice
about a taxation law' that was issued on
30 June 2004.
'These FAQs, together
with any guidance issued by the ATO, will help give a clearer
picture of how the taxation and financial services laws apply to the
provision of taxation advice', Mr Adams said.
Background
The FAQs issued today build on:
- earlier publications issued by ASIC between
2002 and 2004 on the financial services reform regime (such as Policy
Statement 175: Licensing: Financial
product advisers — Conduct and disclosure, issued in 2003); and
- clarifications to the Corporations
Regulations about which services are exempt from being a financial
service (such as amendments to regulation 7.1.29 in February
2004).
For a copy of these new FAQs
and for other financial services publications, go to the Financial
Services homepage of the ASIC website at
www.asic.gov.au/fs.
End of
release
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