Termination of BAS agent registration - April 2019

Overview

The Tax Agent Services Act 2009 (TASA) was enacted to regulate the conduct of tax agents and BAS agents in Australia, ensuring they meet certain professional standards and competence requirements. This Act addresses the need for a regulatory framework to protect the interests of taxpayers and maintain the integrity of the tax system. The Act was passed by the Commonwealth Parliament, with the policy objective of enhancing the professional conduct and competence of tax practitioners. The Tax Practitioners Board, established under this Act, has the authority to terminate the registration of BAS agents who fail to comply with the code of professional conduct or who voluntarily surrender their registration. This ensures that only qualified and compliant practitioners provide tax services to the public.

Scope and Application

The Tax Practitioners Board has authority under the Tax Agent Services Act 2009 (TASA) to manage the registration of BAS agents in Australia. This Act applies to individuals and entities providing BAS agent services across the Commonwealth of Australia. The scope of the legislation includes the regulation of the conduct and professional standards of BAS agents to ensure compliance with tax laws and the protection of consumers. The termination of registration is a significant action that can be taken under subdivision 40-A for reasons such as voluntary surrender by the agent or under subdivision 30-B for failure to comply with the code of professional conduct. These actions are applicable nationwide, impacting the capacity of these agents to provide BAS services. The Act does not specify particular exclusions or thresholds, but the authority to extend or restrict the application is provided through subordinate instruments, which can further define the conditions and processes involved in the registration and termination of BAS agents.

Key Provisions

The main sections relevant to this Gazette are subsections 40-35 and 30-155 of the Tax Agent Services Act 2009 (TASA). Under section 40-35, the Tax Practitioners Board is authorised to terminate the registration of a BAS agent if the agent has surrendered their registration. Section 30-155 allows for the termination of a registration if the agent has failed to comply with the code of professional conduct. In this Gazette, the Board has terminated the registrations of multiple BAS agents, with the reasons given as either the agents surrendering their registration or failure to comply with the code of professional conduct. The Tax Agent Services Act 2009 imposes certain obligations on BAS agents to maintain their registration in good standing. Agents must adhere to the code of professional conduct and ensure all necessary registrations and renewals are completed on time. If an agent wishes to surrender their registration, they must notify the Tax Practitioners Board formally. Failure to comply with the code of professional conduct or neglecting to maintain the registration can result in the Board taking action to terminate the registration. The Gazette indicates that there are consequences for agents who do not comply with the Act's requirements. Agents who surrender their registration are listed with the effective date of termination, while those who fail to comply with the code of professional conduct face termination as well. The specific penalties for these breaches are not detailed in the Gazette, but under the Act, serious breaches can result in substantial fines or even criminal charges. The exact penalties depend on the nature and severity of the breach but can include fines up to $126,000 for corporations and lesser amounts for individuals, alongside potential disqualification from holding a BAS agent registration in the future.