Notice of Gazettal - Scheme to Provide BAS and Tax Agent Services on a Voluntary Basis - March 2019

Overview

The Tax Agent Services Act 2009 was enacted to address the need for regulating the provision of tax agent services in Australia, ensuring that tax agents are appropriately qualified, competent, and compliant with professional standards. This Act was passed by the Parliament of Australia with the aim of protecting the public interest by establishing a regulatory framework that ensures tax agents provide services competently and ethically. The Act was designed to fill the gap in the regulation of tax agents, which was previously not sufficiently governed, potentially leading to issues such as unprofessional conduct, inadequate advice, and non-compliance with tax laws. On 8 March 2019, the Commissioner of Taxation issued a notice under section 50-10 of the Tax Agent Services Act 2009 to declare the National Tax Clinic program as a scheme providing Business Activity Statement (BAS) and tax agent services on a voluntary basis. This program aims to offer free or low-cost tax assistance to individuals and small businesses, thereby enhancing access to professional tax services and supporting compliance with tax obligations. The policy objective behind this notice is to provide a voluntary scheme that supplements the existing regulatory framework of the Act by offering additional support and services to those who might otherwise struggle to afford professional tax assistance.

Scope and Application

The Tax Agent Services Act 2009 applies to tax agents and other individuals or entities providing tax agent services in Australia. It sets out the requirements for the registration of tax agents, the conduct of tax agents, and the provision of tax agent services. The Act applies to all tax agents and those who provide tax agent services within the Commonwealth of Australia, irrespective of the state or territory in which the services are provided. The Act includes provisions for exemptions, exclusions, and thresholds, particularly for small businesses and low-income earners. The Commissioner of Taxation has the authority to extend or restrict the application of the Act through subordinate instruments, such as regulations or legislative instruments, to accommodate changes in the tax environment or to address specific issues as they arise. The National Tax Clinic program mentioned in the notice is an example of a scheme that provides BAS and tax agent services on a voluntary basis in accordance with the Act.

Key Provisions

The main operative sections of the Tax Agent Services Act 2009, as declared in the Gazette, include section 50-10 which allows the Commissioner of Taxation to declare certain schemes to provide tax agent services on a voluntary basis (s. 50-10). In this case, the Commissioner has declared that the National Tax Clinic program is such a scheme (s. 50-10(1)(e) and s. 50-10(2)(e)). The notice of gazettel specifies that this declaration is valid from 8 March 2019. Under this declaration, the National Tax Clinic program is permitted to offer Business Activity Statement (BAS) and tax agent services on a voluntary basis. This means that individuals or entities participating in this program can offer these services without the need for a tax agent registration, provided they adhere to the conditions set out in the Act. The program is designed to provide a specific service model that aligns with the legislative framework established by the Tax Agent Services Act. The obligations and requirements imposed on the parties involved in this scheme include ensuring that any services provided are within the scope permitted by the Act. The National Tax Clinic program must comply with all relevant provisions of the Tax Agent Services Act, including any guidelines or standards set by the Commissioner of Taxation. Furthermore, the program must maintain records and documentation to demonstrate compliance with the Act and be prepared to provide these records upon request. Failure to comply with the provisions of the Tax Agent Services Act can result in various consequences. Under the Act, breaches can lead to civil penalties, including fines, or criminal charges in more severe cases. The maximum penalties for civil contraventions can be substantial and are determined by the severity and nature of the breach. In addition to financial penalties, entities that fail to comply with the Act may face other legal consequences, such as being prohibited from offering tax agent services in the future. It is important for participants in the National Tax Clinic program to understand and adhere to the requirements to avoid these potential penalties and legal repercussions.