Termination of BAS agent registrations - February & March 2018

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Parliament of Australia to establish a regulatory framework for tax and BAS agents, aiming to protect the public by ensuring that those providing tax services are competent, ethical, and reliable. This Act fills a crucial gap by establishing the Tax Practitioners Board (TPB), which oversees the registration, conduct, and education of tax practitioners. The policy objective behind TASA is to safeguard the public interest by promoting high professional standards and ensuring that tax practitioners adhere to a code of conduct. The TPB has the authority to terminate the registration of BAS agents under subdivision 40-A of the Act if they fail to meet the required standards, as evidenced by the recent termination of multiple BAS agent registrations due to voluntary surrender.

Scope and Application

The Tax Agent Services Act 2009 (TASA) applies to individuals and entities engaged in the provision of tax agent services, specifically including Business Activity Statement (BAS) agents, in Australia. The Act regulates the professional conduct and registration requirements of tax agents to ensure they meet professional standards and maintain public trust in the tax system. The legislation applies across the Commonwealth of Australia, meaning its provisions are enforceable nationwide. The Act mandates the registration of tax agents and establishes the Tax Practitioners Board, which oversees the registration process, sets professional standards, and has the authority to terminate registrations for reasons such as surrender, non-compliance, or misconduct. The Act’s scope includes setting out specific exclusions, such as individuals or entities that are not providing tax agent services, and it extends its application through subordinate instruments, including regulations that further define the requirements for registration and conduct. The termination of BAS agent registrations, as evidenced by the gazette, illustrates the Board's enforcement of these provisions when necessary.

Key Provisions

The Tax Agent Services Act 2009 (TASA) outlines the key provisions governing the registration and operation of BAS agents in Australia. Section 40-10(1) requires that any individual or entity wishing to provide BAS services must be registered with the Tax Practitioners Board (TPB). Section 40-15 permits the TPB to terminate the registration of a BAS agent under subdivision 40-A if certain conditions are met. The notice of termination must include the name of the BAS agent, the effective date of termination, and the reason for the termination, as seen in the gazetted notice. These terminations, as per the gazette, were all due to the agents surrendering their registrations. The obligations imposed by the Act on BAS agents include maintaining professional indemnity insurance, adhering to the Code of Professional Conduct, and ensuring compliance with all relevant tax laws. Registered agents must also undertake continuing professional development and report any changes in their personal or business circumstances to the TPB. Failure to meet these obligations can result in disciplinary action, including suspension or termination of registration. The Act imposes penalties for non-compliance with its provisions. For example, Section 40-25 outlines that a person who engages in BAS activities without being registered commits an offence. The maximum penalty for this offence, as stipulated in Section 40-30, is a fine of up to $22,200 for an individual and $111,000 for a body corporate. Additionally, Section 40-35 provides that a person who provides BAS services while their registration is suspended or terminated is liable to a fine of up to $11,100 for an individual and $55,500 for a body corporate. These penalties reflect the seriousness with which the Act regards compliance with its requirements.