Termination of BAS agent registration - July 2016

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Australian Parliament to regulate the conduct and practice of tax agents and BAS agents in Australia. The Act aims to ensure that tax agents and BAS agents are competent, qualified, and act in the best interests of their clients. The Act establishes the Tax Practitioners Board, which is responsible for regulating the tax profession and ensuring compliance with the Act. The policy objective of the Act is to protect the public and maintain public confidence in the tax profession by ensuring that tax agents and BAS agents are competent, qualified, and act with integrity and in the best interests of their clients. The Act provides for the registration and regulation of tax agents and BAS agents, sets standards for their conduct and practice, and provides for the investigation and prosecution of misconduct. The Act also provides for the termination of registration of tax agents and BAS agents who fail to comply with the Act or who are otherwise unfit to hold a registration.

Scope and Application

The Tax Practitioners Board under the Tax Agent Services Act 2009 (TASA) has terminated the registration of various BAS agents, impacting both individual practitioners and corporate entities. The terminations are effective from specified dates, with reasons such as the surrender of the registration by the individual or the company ceasing to exist. These terminations apply to entities and individuals who have been authorised to act as BAS agents, with the decision affecting their eligibility to provide BAS agent services in Australia. The Act operates on a Commonwealth level, impacting the national scope of authorised BAS agents. The specific exclusions or exemptions are not detailed in the Gazette, but the general provisions of the TASA apply, including the requirement for ongoing professional competence and adherence to ethical standards. Subordinate instruments or regulations may further extend or restrict the application of the Act, although these are not explicitly mentioned in the provided Gazette.

Key Provisions

The main operative sections of the Gazette C2016G01240 pertain to the termination of BAS agent registrations under subdivision 40-A of the Tax Agent Services Act 2009 (TASA). Section 40-10 specifies the conditions under which a BAS agent's registration can be terminated, including when the agent ceases to meet the eligibility requirements, when the company ceases to exist, or when the agent voluntarily surrenders their registration. Section 40-15 provides the mechanism by which the Tax Practitioners Board (TPB) may terminate the registration, and section 40-20 details the process for notifying affected parties of the termination. Under the Act, the TPB has a responsibility to ensure that BAS agents remain eligible to hold a registration. This involves monitoring the compliance of BAS agents with the ongoing requirements of the Act, which include maintaining professional indemnity insurance, completing continuing professional development, and adhering to the professional standards set out in the Act. The TPB can terminate a BAS agent's registration if the agent fails to meet these requirements, or if there are other reasons specified in the Act, such as the agent being found guilty of professional misconduct or engaging in dishonest or dishonourable conduct. Breaches of the Act's provisions may lead to civil or criminal consequences, as outlined in the relevant sections. For example, section 142 of the Act imposes penalties for providing misleading or deceptive information to the TPB, with the maximum penalty being 500 penalty units for an individual and 2,500 penalty units for a body corporate. Additionally, section 144 of the Act provides for the imposition of fines for failure to comply with an order made by the TPB, with the maximum penalty being 1,000 penalty units for an individual and 5,000 penalty units for a body corporate. In more serious cases, section 145 of the Act provides for the disqualification of a person from being registered as a BAS agent, with the disqualification period potentially lasting up to five years.