Termination of BAS agent registrations - August 2020

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Commonwealth Parliament to address the need for a regulatory framework governing the conduct and registration of tax agents and Business Activity Statement (BAS) agents in Australia. The primary objective of this legislation is to ensure that tax practitioners meet certain professional standards and competence requirements, thereby protecting the interests of clients and maintaining the integrity of the tax system. The Act established the Tax Practitioners Board (TPB) to oversee the registration and conduct of tax agents and BAS agents, enabling the TPB to take action against those who do not comply with the professional standards and regulatory requirements. The gazette C2020G00955 issued by the TPB on 11 August 2020, details the termination of registration for multiple BAS agents, all effective from the same date due to voluntary surrender of their registrations. This action underscores the TPB's commitment to enforcing compliance and maintaining the standards expected of registered tax and BAS agents in Australia.

Scope and Application

The Termination of BAS Agent Registration notice from the Tax Practitioners Board pertains to the cessation of the registrations of various tax agents under the Tax Agent Services Act 2009 (TASA). The act applies to tax agents, including individuals and entities, who provide Business Activity Statement (BAS) services to businesses in Australia. The terminations listed in the notice, effective from 11 August 2020, were executed due to the agents' voluntary surrender of their registrations. The jurisdictional reach of the act extends nationally, covering all states and territories within Australia. The act does not specify particular exclusions or exemptions, but it does operate under the authority granted by the Tax Agent Services Act 2009, which may include provisions for subordinate instruments to further define or extend its application. These subordinate instruments could potentially include regulations or guidelines that specify additional conditions or operational standards for tax agents, thereby impacting the scope of the act.

Key Provisions

The Tax Agent Services Act 2009 (TASA) sets out the regulatory framework for tax practitioners in Australia. Under subdivision 40-A of TASA, section 40-25 (subsections 40-25(1) and 40-25(2)) provides the authority for the Tax Practitioners Board (TPB) to terminate the registration of a BAS agent. This process involves the TPB reviewing the circumstances of the registered agent and determining that termination is warranted. The reasons for termination, as listed in the gazette, are primarily due to the agents surrendering their registrations. Section 40-25(3) outlines the procedure for the TPB to notify the agent and the public of the termination, which includes publishing the names and reasons for termination in the Gazette. The obligations and requirements imposed by the Act on registered BAS agents include adhering to professional standards, maintaining appropriate qualifications and insurance, and ensuring compliance with all relevant legislation. Agents must also complete continuing professional development to maintain their registration. The Act mandates that agents must not engage in conduct that is dishonourable or that would bring the profession into disrepute. Under section 40-20, agents must notify the TPB of any changes in their personal or business circumstances that could affect their suitability to hold a registration. Failure to comply with the requirements of the Act can result in penalties and consequences. Section 40-25(4) allows the TPB to impose fines, suspend or cancel registrations, or refuse to register or re-register an agent. Section 40-30 provides that an agent who has been deregistered may apply for reinstatement after a specified period, subject to meeting the necessary conditions. The Act also includes provisions for civil and criminal penalties under sections 40-40 and 40-45, respectively. For instance, section 40-45(1) specifies that an agent found guilty of professional misconduct can face fines up to $21,000 for individuals and $105,000 for bodies corporate, along with potential imprisonment. These stringent measures ensure that the integrity and standards of the tax profession are upheld.