Termination of BAS agent registration - June 2019

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Parliament of Australia to provide a regulatory framework for tax practitioners, including BAS agents, ensuring they adhere to professional standards and maintain public trust. The Act addresses the need for a robust system of regulation and oversight for tax agents to prevent misconduct and maintain integrity in the tax system. The policy objective of TASA is to protect the public interest by ensuring that tax practitioners are competent, act with integrity, and comply with relevant laws. The Tax Practitioners Board, established under this Act, is responsible for managing the registration of tax agents and taking disciplinary actions where necessary. The gazette C2020G00093 notifies the public of the termination of the registrations of several BAS agents under the TASA. The terminations, which took effect on various dates in June 2019, were due to reasons such as surrender of registration or cessation of business. The gazette provides transparency and informs the public and other stakeholders of changes in the registered status of BAS agents, thereby supporting the regulatory framework established by the Act.

Scope and Application

The Tax Agent Services Act 2009 (TASA) provides a framework for the regulation of tax practitioners in Australia, including the registration and conduct of BAS agents. The act applies to individuals and entities engaged in the preparation or lodgment of business activity statements (BAS) on behalf of others, requiring them to be registered with the Tax Practitioners Board. The act has a Commonwealth reach, extending its application across Australia. The act specifies certain exclusions, such as individuals or entities that do not engage in the lodgment of BAS or those who perform such tasks on an occasional basis. The act also allows for the creation of subordinate instruments to further define the scope of registration and the conduct expected from BAS agents. The act's enforcement is primarily through the Tax Practitioners Board, which has the authority to terminate registrations under certain conditions, as exemplified by the listed terminations effective from 2 June 2019 to 18 June 2019. The reasons for termination include surrender of registration, death of the registrant, or the cessation of the entity's existence.

Key Provisions

The Tax Agent Services Act 2009 (TASA) governs the registration and activities of BAS agents in Australia. The primary sections of the Act that pertain to the termination of registrations, as exemplified in the Gazette, are found in subdivision 40-A (subsections 40-10 to 40-15). These sections outline the criteria and processes by which the Tax Practitioners Board (TPB) may terminate the registration of a BAS agent. The reasons for such terminations include voluntary surrender, death, the cessation of the business entity, or other specified circumstances that render the agent ineligible to maintain their registration. The Gazette provides a list of agents whose registrations were terminated, along with the effective date and reason for each termination. Under the Act, BAS agents are required to adhere to certain standards of professional conduct and competence. They must maintain professional indemnity insurance, comply with continuing professional development requirements, and meet other criteria set out by the TPB. The Act also mandates that agents must not engage in conduct that is dishonourable or unprofessional, which could lead to disciplinary action and potential termination of their registration. The obligations extend to timely renewal of registrations, accurate reporting of any changes in personal or business circumstances, and ensuring that all clients' interests are protected. Failure to comply with the provisions of the Act can result in civil or criminal consequences, depending on the severity of the breach. Under section 178 of the Act, the TPB can impose fines on BAS agents for breaches of the registration requirements. The maximum penalty for a serious breach, such as fraudulent conduct, is $11,100 for an individual or $55,500 for a body corporate. In cases where the breach is less severe, the penalties can range from fines of $2,220 for individuals and $11,100 for bodies corporate. Additionally, the TPB has the authority to suspend or cancel a BAS agent's registration, which can have significant professional and financial repercussions for the agent.