Termination of BAS agent registrations - August 2018

Overview

The Tax Agent Services Act 2009 (TASA) was enacted to address the need for regulation of tax agents and Business Activity Statement (BAS) agents in Australia, ensuring that individuals and entities providing these services meet certain professional standards and are fit and proper persons. The Act was introduced by the Australian Parliament, aiming to protect the public and maintain the integrity of the tax system by establishing a regulatory framework for tax practitioners. The Tax Practitioners Board, established under the Act, is responsible for regulating the conduct and competence of tax agents and BAS agents, and has the authority to terminate registrations where necessary. In the case of the listed BAS agents, their registrations were terminated by the Board due to their surrender, as per the provisions of subdivision 40-A of the Act. This action underscores the Board’s commitment to upholding the standards required of those providing tax services in Australia.

Scope and Application

The Termination of BAS Agent Registration notice, issued under the authority of the Tax Practitioners Board, specifically pertains to the termination of the registration of various Business Activity Statement (BAS) agents under subdivision 40-A of the Tax Agent Services Act 2009 (TASA). The notice applies to individual agents and entities whose registrations have been terminated, effective from 31/08/2018, due to the surrender of their registration. This includes both sole practitioners and companies that have voluntarily surrendered their BAS agent registration. The act applies nationally across Australia as it is a Commonwealth Act, and its termination of registration has a direct impact on the listed entities' ability to provide BAS services within the jurisdiction. The notice does not specify exclusions, exemptions, or thresholds within the scope of this particular announcement, but it is understood that the TASA governs the broader scope of registration and conduct for BAS agents. The Act's application can be extended or restricted through subordinate instruments, which are not detailed in this notice but are part of the legislative framework governing the registration and operation of BAS agents.

Key Provisions

The Tax Agent Services Act 2009 (TASA) governs the registration and conduct of BAS agents in Australia. Under section 40-50, the Tax Practitioners Board has the authority to terminate the registration of BAS agents who have surrendered their registration or who fail to meet the requirements set out in the Act. The gazetted notice C2018G00983 lists the names of BAS agents whose registrations have been terminated, effective from 31/08/2018, due to surrender. This includes Allinson Accounting Solutions Pty Ltd, Ashlee Jane Edwards, Bridget Louise Anderson, Christine Marie Anderson, Domenica Crescenzi, Helen Dowling, Katherine Suzanne Henry, KTL Solutions FM Pty Ltd, Patricia Mary Elliott, Sarah Elisabeth Martin, Stephanie Gaye Giampiccolo, The Eclectic Fashionistas Pty. Ltd., Winlea & Associates Pty Ltd, and Yolande Anne Kingham. The Act imposes several obligations on BAS agents, including maintaining professional indemnity insurance (section 85-5), complying with the Code of Professional Conduct (section 85-15), and ensuring they meet the continuing professional development requirements (section 85-35). The obligations also include timely lodgement of business activity statements (BAS) on behalf of clients and adherence to the legislative framework governing tax practices. The termination of registration under section 40-50 effectively removes these agents from the register of authorised BAS agents, prohibiting them from providing BAS services. Failure to comply with the Act’s requirements can result in significant consequences. Section 40-50 outlines that the Board can terminate the registration of BAS agents who surrender their registration or fail to meet the criteria set out in the Act. The notice serves as public notification of these terminations, ensuring that the public and other stakeholders are aware that these individuals and entities can no longer provide BAS services. Furthermore, continued practice by a de-registered agent can result in civil or criminal penalties, including fines and imprisonment. The maximum penalties are determined by the severity of the breach and are outlined in the Act.