Termination of BAS agent registrations - December 2017

Overview

The Tax Agent Services Act 2009 (TASA) was enacted to establish a regulatory framework for the conduct and registration of tax practitioners, including BAS agents, in order to safeguard the integrity of the Australian taxation system and protect consumers from unscrupulous practices. The Act was introduced to address the problem of ensuring that tax practitioners meet specific competency standards and adhere to a code of professional conduct. The policy objective of the Act is to maintain a high level of professional standards within the tax industry, thereby enhancing public confidence in the tax system. The Act empowers the Tax Practitioners Board, established under this legislation, to oversee the registration and ongoing professional development of tax agents. The Board has the authority to terminate the registration of BAS agents who no longer meet the necessary standards or who have surrendered their registrations, as seen in the case of the listed agents. The terminations noted in the Gazette are a direct result of the Board's mandate to uphold the regulatory requirements set forth in TASA.

Scope and Application

The Tax Agent Services Act 2009 (TASA) applies to individuals and entities acting as tax practitioners, including BAS agents, within Australia. This Act governs the conduct, registration, and professional standards of those providing tax services to the public. The jurisdiction of this Act is national, as it is a Commonwealth legislation. It mandates the registration of BAS agents and imposes obligations to maintain professional standards and comply with continuing professional development requirements. The Act’s scope includes the termination of registration for BAS agents who voluntarily surrender their registration or who fail to meet the stipulated requirements. Such terminations are effective as per the specified dates, and reasons for termination, such as surrender or death, are documented in the gazette. Notably, the Act does not specify any exclusions or exemptions from its requirements, implying a broad application across all eligible tax practitioners within Australia. The Tax Practitioners Board, under the authority of this Act, has the power to extend or restrict the application of its provisions through subordinate instruments, ensuring flexibility in enforcement and compliance measures.

Key Provisions

The Tax Agent Services Act 2009 (TASA) provides for the regulation and oversight of tax practitioners, including BAS agents. Under subdivision 40-A of the Act (sections 40-120 to 40-180), the Tax Practitioners Board is empowered to terminate the registration of BAS agents under certain conditions. The main operative sections relevant to the termination of BAS agent registration include sections 40-155 (application for termination) and 40-160 (grounds for termination). Section 40-155 allows the Board to terminate a registration upon application from the BAS agent themselves, while section 40-160 lists the specific grounds on which the Board may terminate a registration, such as misconduct or incapacity. In the case of the listed BAS agents, their registrations were terminated effective from 19/12/2017 or 23/12/2017, with the reason given as "Surrender" for all but one, Peter Anthony Yates, whose registration was terminated due to his death. The Act imposes various obligations and requirements on BAS agents to maintain their registration in good standing. These include adhering to the professional standards set out in the Tax Practitioners Board’s codes of professional conduct, ensuring ongoing professional development, and complying with the annual registration renewal process. The Board also mandates that BAS agents must notify the Board of any changes in their personal or business circumstances that may affect their fitness to hold a registration. Failure to comply with these obligations can result in the Board initiating proceedings to terminate the agent's registration. Breaches of the requirements set out in the Act can lead to serious consequences. Under section 40-160, the Board can terminate a BAS agent’s registration if they find that the agent has engaged in conduct that makes them unsuitable to hold a registration. This includes instances of dishonesty, professional misconduct, or failing to meet the professional standards. The maximum penalty for serious breaches can include fines and imprisonment. Additionally, under section 40-175, any person who continues to act as a BAS agent without a valid registration can be subject to civil penalties, including fines of up to $22,200 for individuals and $111,000 for bodies corporate. Criminal penalties can also apply, with maximum penalties reaching up to 5 years imprisonment for serious offences.