Termination of BAS agent registrations - December 2019

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Parliament of Australia to address issues related to the regulation of tax agents and BAS agents, ensuring that they meet certain professional standards and comply with ongoing education requirements. The Act establishes the Tax Practitioners Board to oversee the registration and conduct of tax agents and BAS agents. The policy objective of the Act is to protect the public interest by ensuring that tax agents and BAS agents are suitably qualified, competent and act with integrity. The Act provides a framework for the regulation of tax agents and BAS agents, including setting out the qualifications and ongoing education requirements for registration, and establishing a process for the review and termination of registration where necessary.

Scope and Application

The Tax Agent Services Act 2009 (TASA), administered by the Tax Practitioners Board, applies to entities and individuals who provide tax agent services in Australia, including the preparation and lodgement of Business Activity Statements (BAS) on behalf of businesses. This legislation encompasses various types of tax practitioners, such as accountants, BAS agents, and tax (financial) planners, ensuring they meet specific professional standards and are registered with the Board. The Act applies nationwide, covering all states and territories of Australia, as it is a Commonwealth Act. The scope of the Act extends to regulating the conduct of tax practitioners, mandating compliance with certain ethical and professional standards, and ensuring that tax agents are competent and reliable. The Act includes provisions for the registration, continuing professional education, and deregistration of tax agents, and it allows for the imposition of penalties and sanctions for non-compliance or misconduct. While the Act broadly applies to all tax agents, specific exclusions and exemptions might exist for certain types of practitioners or activities, which can be further defined in subordinate instruments or regulations issued under the authority of the Act.

Key Provisions

The Tax Practitioners Board (TPB) has issued a gazette, C2020G00805, notifying the termination of BAS agent registrations under the Tax Agent Services Act 2009 (TASA). Section 40-55 of the Act empowers the TPB to terminate the registration of BAS agents, and this gazette lists the agents whose registrations have been terminated as of 17 December 2019. The reasons for termination include voluntary surrenders of registration, as well as the cessation of existence for some entities. The termination of these registrations means that the named agents can no longer act as BAS agents and are prohibited from engaging in activities that require a BAS agent registration. The Act imposes several obligations on BAS agents to maintain their registration status. These include compliance with continuing professional development requirements, adherence to professional standards, and timely submission of relevant fees and information to the TPB. The TPB monitors these obligations closely and has the authority to terminate registrations if an agent fails to comply with these requirements. The gazette serves as a public record of the TPB's actions to ensure that only qualified and compliant agents are permitted to operate in this capacity. Breach of the Act's provisions can lead to significant penalties. Under section 40-45 of the TASA, individuals or entities found guilty of practising as a BAS agent without a valid registration can face substantial fines. The maximum penalty for individuals is $66,000, and for bodies corporate, the maximum penalty is $330,000. Additionally, section 40-50 provides that the TPB can apply to the Federal Circuit Court for an order to compel compliance or to prevent further non-compliance. These stringent measures underscore the importance of adhering to the Act's provisions to avoid severe civil and criminal consequences.