For tax agents
Tax advice or designated service? The boundary for transactions and business sales
Tax advice is not a designated service merely because it affects a commercial decision. Table 6 focuses on professional work that assists, plans, organises, executes or otherwise acts for a person in specified transactions and structures. AUSTRAC's current guidance draws the practical line at active steps that directly advance the relevant outcome. A tax analysis may only influence whether a client proceeds. The same practice may later cross into designated-service work when it accepts instructions to negotiate, prepare, coordinate or execute the transaction. Scope should therefore be reviewed as the matter changes, not decided once from the engagement's job title.
See the tax agents AML/CTF workspaceUse the direct-advancement test
Start with the outcome listed in table 6: a real-estate transfer, a sale or transfer of a body corporate or legal arrangement, receiving or managing property for a transaction, entity-related equity or debt financing, a shelf-company transfer, creation or a restructure that changes legal form, specified acting roles, or an address service. Then ask whether the practice's work takes active steps that move that outcome forward. Merely being connected to the matter or giving advice that influences a decision is not enough.
Timing is important. Preliminary advice may be outside scope while the transaction remains hypothetical or remote. A designated service can begin once instructions are accepted and the practice starts preparatory work that directly advances a real transaction or structure. Record the facts available at that point: identified or prospective parties, the transaction contemplated, the requested deliverables, and why the activity does or does not meet the service description.
Recognise when a business-sale engagement changes character
AUSTRAC gives a useful accounting example. Advice about the tax implications of selling a body corporate may influence the owner's decision but does not itself directly advance a transaction when no transaction exists. Once a buyer or potential buyers are identified and the firm is instructed to help sell the company, steps such as representing the seller in negotiations, preparing or reviewing sale contracts, performing transaction due diligence, obtaining transaction approvals and preparing for settlement can be captured.
A valuation also depends on context. A standalone valuation used for planning, succession discussion or tax reporting may remain outside the designated-service description. A valuation of assets and liabilities performed in anticipation of and to advance an identified company sale can form part of the captured assistance. Avoid universal lists. Connect the scope decision to the actual purpose, stage and effect of the work.
Do not treat every document or email as transaction execution
A document is not captured simply because it mentions a transaction. Conversely, calling work 'advice' does not keep it outside scope if the document directly advances the deal. Consider whether the practice is preparing terms for negotiation, coordinating parties, completing due diligence for the proposed transfer, lodging transaction-specific forms, or otherwise acting on instructions that move the sale, purchase or transfer toward completion.
Use separate matter phases where practical: advice and feasibility; transaction preparation; execution; and post-completion tax work. Each phase can carry its own scope outcome. If the work changes, update the decision before the newly captured service begins, complete required CDD and risk controls, and make sure the AML/CTF program covers the service actually being delivered.
Build a scope record that supports professional judgment
The file should identify the table 6 item considered, describe the client instruction in ordinary language, state whether a real or sufficiently prospective transaction exists, list the practice's active steps, and explain whether those steps directly advance the regulated outcome. Attach or link the engagement letter, instructions and key transaction documents so the conclusion can be tested later.
A reasoned outside-scope outcome is valuable evidence; it should not be treated as a shortcut around the regime. Add a trigger for reassessment when a buyer is identified, negotiations start, the firm is asked to prepare transaction documents, client money is introduced, a structure is created or changed, or the practice accepts authority to act. A simple trigger list prevents the original advice-only decision from becoming stale.
Official sources
Use these primary AUSTRAC pages to confirm the current rules and apply them to your circumstances.
Frequently asked questions
Is tax advice about selling a company a designated service?
Not automatically. Advice about tax consequences may only influence the decision. If the practice later takes active steps that directly advance an identified sale—such as transaction negotiations, due diligence, sale documents or settlement preparation—the later work may be designated.
Does preparing a valuation trigger AML/CTF obligations?
It depends on purpose and context. A standalone valuation may not directly advance a transaction. A valuation performed as transaction due diligence for an identified company sale may form part of designated assistance. Record the facts and the reason for the conclusion.
When should the practice repeat its scope assessment?
Repeat it whenever the instruction, parties, transaction stage or deliverables materially change. Common triggers include identifying a buyer, starting negotiations, preparing execution documents, receiving client money, creating an entity or trust, or being asked to change the legal form of a body corporate or legal arrangement.
Put it into practice
Cassandra AML turns these obligations into a working system: designated-service decisions, customer due diligence, screening, monitoring and reporting records — hosted in Sydney, free to start.
This guide is general information for Australian professionals. It is not legal advice and does not replace the AML/CTF Act, the AML/CTF Rules or AUSTRAC guidance. Confirm your specific obligations with AUSTRAC or a qualified legal adviser. See our editorial and correction standards.