Termination of BAS agent registrations - April 2020

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Parliament of Australia to establish a framework for the regulation of tax practitioners, ensuring that they meet professional standards and obligations. This Act was introduced to address the need for a consistent and high standard of conduct among those providing tax services, thereby protecting consumers and maintaining the integrity of the tax system. The Tax Practitioners Board, established under this Act, is responsible for the registration and ongoing regulation of tax agents and BAS agents. The policy objective of TASA is to enhance the quality of tax services and to ensure that practitioners adhere to professional standards, thereby fostering trust and reliability in the tax system. The recent terminations of registrations under subdivisions 40-A and 30-B of the Act reflect the Board’s commitment to these objectives, as it takes action against agents who either voluntarily surrender their registrations or fail to meet the requisite standards and requirements.

Scope and Application

The Tax Agent Services Act 2009 (TASA) applies to individuals and entities that are registered as tax (including BAS) agents in Australia. This Act is enforced by the Tax Practitioners Board (TPB) and operates under the Commonwealth jurisdiction, impacting tax agents across Australia. The Act ensures that tax agents meet certain professional standards and legal requirements to provide services in the tax and BAS preparation and lodgment space. The Act allows the TPB to terminate registrations based on reasons such as surrender of registration, failure to meet registration requirements, or breaches of the professional conduct code. The termination of registration is effective from specific dates as listed, with reasons for each termination clearly stated. While the Act itself outlines the scope and application, the TPB may issue subordinate instruments to extend or clarify certain provisions, ensuring comprehensive regulation of the tax agent profession.

Key Provisions

The Gazette C2020G00954 outlines the termination of Business Activity Statement (BAS) agent registrations under the Tax Agent Services Act 2009 (TASA). According to section 40-35, the Tax Practitioners Board has terminated the registrations of several BAS agents, effective from 21/04/2020. The reasons for termination vary; some agents surrendered their registrations voluntarily while others ceased due to various reasons including the death of the agent. Under section 30-45, the Board has also terminated registrations for those who no longer meet the requirements or have failed to comply with the code of professional conduct. These terminations are significant as they impact the ability of these agents to continue providing tax services. The obligations imposed on BAS agents by the Act include maintaining registration and adhering to the code of professional conduct. Agents must also ensure they meet the continuing professional development requirements and comply with any other statutory obligations as stipulated by the Tax Practitioners Board. Failure to meet these obligations can lead to the termination of their registration, as seen in the Gazette. Additionally, the Act mandates that agents must notify the Board of any changes in their circumstances that might affect their eligibility to hold a registration. The consequences for breaching the provisions of the Tax Agent Services Act 2009 can be severe. According to section 40-60, unauthorised practice as a tax agent is an offence, punishable by a fine of up to $21,000 for an individual and $105,000 for a body corporate. Furthermore, under section 30-70, failure to comply with the code of professional conduct can also result in the termination of registration. Continuous non-compliance or serious breaches may lead to further penalties, including potential criminal charges. It is crucial for BAS agents to understand these obligations and consequences to maintain their professional standing and avoid legal repercussions.