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Chapter 35
Electronic Lodgments
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About the ELS
The electronic lodgment service (ELS) is an electronic data exchange system that allows tax practitioners to transmit data to the ATO, and receive reports and electronic forms from the ATO
The ELS allows participating agents to lodge their clients' tax returns and other tax forms with the ATO electronically
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About the ELS
Advantages of ELS
immediate acknowledgment by the ATO of receipt of returns and notification of those not received
24 hour/365 days a year access to the ATO
faster turnaround - 95% of original individual assessments will be processed within 14 days
access to a range of electronic reports from ATO business systems
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About the ELS
Advantages of ELS
electronic lodgment of Business Activity Statements (BAS), Instalment Activity Statements (IAS) and Australian Business Number (ABN) applications
reduction in paper usage
accuracy - through edit checks within the tax software
choice of software providers
privacy
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ELS User types
Transmitter
A transmitter prepares client tax returns and then transmits them using the ELS registration number
A transmitter can also transmit returns on behalf of preparer tax agents
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ELS User types
Preparer
A preparer prepares client returns which are then lodged by a transmitter tax agent who will use their own ELS password and ELS approval number
A preparer does not have an ELS password
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ELS Transmission
There are currently two transmission options available to tax agents
Dial IP - is a private network provided by Telstra
This network has no connection to the internet and is only used for ELS access
Internet - allows the tax agent to connect to ELS via their internet service provider (ISP)
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ELS Software
The ELS allows participating agents to lodge their clients' tax returns and other tax forms with the ATO electronically, via modem
The ATO provides a list of commercially available software for use by tax agents, all of which have undergone self-testing for the transmission of data
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Electronic Lodgment
A taxpayer must provide the tax agent with a written declaration before the agent transmits the return
This declaration serves two purposes:
it authorises the tax agent to lodge the taxpayer's return electronically, and
records the taxpayer's agreement with the information intended for transmission to the ATO
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