Termination of BAS agent registrations - April 2018

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Parliament of Australia to address the need for regulating and overseeing the conduct of tax practitioners, including BAS agents, in order to protect the public interest and maintain the integrity of the tax system. This Act establishes the Tax Practitioners Board (TPB) to administer and enforce the provisions of the Act, with a key policy objective of ensuring that tax practitioners maintain a high standard of professional competence and conduct. In line with this objective, the TPB has the authority to terminate the registration of BAS agents, which is a mechanism to safeguard the public from practitioners who no longer meet the required standards or have ceased their operations, as evidenced by the recent termination of multiple BAS agent registrations due to various reasons such as surrender or cessation of existence.

Scope and Application

The Tax Agent Services Act 2009 (TASA) applies to registered tax (including BAS) agents who provide taxation services to the public in Australia. This includes individuals, companies, and other entities that are authorised to act on behalf of taxpayers in dealings with the Australian Taxation Office (ATO). The Act regulates the conduct of these agents to ensure they meet certain professional standards and comply with ongoing education requirements. The jurisdiction of the Act is national, applying across all states and territories of Australia. It provides the Tax Practitioners Board with the authority to register tax agents, impose conditions on their registration, and terminate registrations if the agents fail to meet the necessary standards or if their registration is voluntarily surrendered, as evidenced by the terminations listed in the gazette. The Act does not explicitly outline exclusions or thresholds, but the Board has the discretion to determine which agents are subject to its provisions based on their activities and compliance with the Act. The application and scope of the Act can be extended or refined through subordinate instruments, such as regulations or codes of conduct, which further detail the obligations and standards expected of registered tax agents.

Key Provisions

The Tax Agent Services Act 2009 (TASA) contains provisions regarding the registration and conduct of Business Activity Statement (BAS) agents. Section 40-45 (subsections 40-45(1) and 40-45(2)) allows the Tax Practitioners Board to terminate the registration of a BAS agent if they have surrendered their registration or if they have ceased to exist. The termination of registration is a significant event as it prohibits the individual or entity from continuing to act as a BAS agent. The gazetted list of terminated registrations (C2018G00668) includes numerous agents who have either surrendered their registration or ceased to exist, resulting in their removal from the BAS agent register as of 10 April 2018. The obligations imposed by the Act on BAS agents include adherence to professional standards and continuous compliance with registration requirements. Registered BAS agents must maintain their professional competence and ensure their practices comply with all relevant legislative and regulatory standards. They are also required to keep accurate and complete records of their services and to report any changes in their circumstances to the Tax Practitioners Board promptly. Failure to meet these obligations can lead to disciplinary action, including the potential termination of their registration. The Act establishes several offences and penalties for breaches of its provisions. Under section 40-45(3), any BAS agent who continues to provide services after their registration has been terminated can face significant penalties. The maximum penalty for contravening this section is 500 penalty units, reflecting the seriousness of the offence. Additionally, individuals who have their registration terminated may be subject to further disciplinary action, including fines and potential disqualification from future registration. These penalties underscore the importance of compliance with the Act’s requirements and the consequences of failing to adhere to professional standards.