Termination of BAS agent registrations - August 2019

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Parliament of Australia to address issues of integrity and competence within the tax agent profession. The Act established the Tax Practitioners Board to regulate the conduct and standards of tax practitioners, including BAS agents, with the aim of protecting consumers and ensuring that only qualified and trustworthy individuals are permitted to provide tax services. This legislative framework was introduced to fill the gap left by the lack of a national system governing the professional conduct and qualifications of tax agents. The policy objective of the Act is to maintain public confidence in the tax system by ensuring that tax practitioners adhere to high professional standards and ethical practices.

Scope and Application

The Tax Agent Services Act 2009 (TASA) governs the registration and conduct of tax agents in Australia, including Business Activity Statement (BAS) agents, ensuring that they meet certain professional standards and requirements. The act applies to individuals and entities that provide tax agency services, including BAS agents, tax (financial) advisers, and tax (BAS) agents. This applies nationally across Australia, as it is a Commonwealth Act. The act's jurisdiction extends to all individuals and entities involved in the provision of tax agency services within Australia, encompassing various industries that require such services. The act sets out specific criteria that BAS agents must meet to maintain their registration, and the Tax Practitioners Board has the authority to terminate registrations if these standards are not upheld. The termination of registration, as evidenced by the gazette, is a direct consequence of the BAS agents either surrendering their registration or failing to meet the ongoing requirements stipulated by the act. The act does not explicitly state exclusions or thresholds within the text provided, but it does allow for the creation of subordinate instruments to further define and regulate the scope of its application.

Key Provisions

The Gazette C2020G00776, issued under the Tax Agent Services Act 2009 (TASA), details the termination of BAS agent registrations by the Tax Practitioners Board. According to the gazette (sections 40-185 to 40-195), the Board has terminated the registrations of numerous BAS agents, effective from specified dates, primarily due to surrender of their registrations (section 40-190). The terminations listed include both individual agents and companies, each with a noted termination date and the reason, predominantly being surrender of their registration (sections 40-190 and 40-195). The Act imposes several obligations on the parties it governs, primarily ensuring that BAS agents meet the registration requirements set forth by the Board. These requirements include maintaining professional standards and ongoing professional development, and complying with the Board's directives and any applicable laws (sections 40-165 and 40-170). The Act also requires BAS agents to notify the Board of any changes in their circumstances that may affect their eligibility for registration (section 40-160). Additionally, the Act mandates that agents provide accurate and complete information when applying for or renewing their registration (section 40-155). Failure to comply with the requirements set out in the Act can lead to serious consequences. Section 40-200 of the Act outlines that any breach of the Act or regulations can result in penalties. For instance, knowingly providing false or misleading information during the registration process can lead to fines of up to $22,200 for individuals and $111,000 for bodies corporate, as stipulated under section 40-210. Additionally, the Act empowers the Board to cancel a registration if the agent is found to be unfit to hold a registration, which may include instances of professional misconduct or incompetence (section 40-205). Such actions can have significant civil and possibly criminal repercussions, including the potential for court-imposed penalties and professional disqualifications (sections 40-205 and 40-210).