Termination of BAS agent registrations - January 2018

Overview

The Tax Agent Services Act 2009 (TASA), enacted by the Australian Parliament, addresses the need for regulation of tax agents and BAS agents to ensure that they adhere to professional standards and conduct themselves with integrity. This legislation provides the framework for the registration and regulation of tax and BAS agents, thereby safeguarding the public interest and ensuring compliance with tax laws. The policy objective of TASA is to maintain a high standard of professional conduct among tax practitioners by setting out the qualifications, registration requirements, and ongoing obligations for tax agents and BAS agents. The Tax Practitioners Board, established under the Act, is responsible for administering these provisions, including the power to terminate registrations where necessary. The termination of registrations, as outlined in the gazette, reflects the Board's commitment to upholding these standards by taking action against those who fail to comply with the prescribed professional conduct or cease to exist as entities.

Scope and Application

The Tax Agent Services Act 2009 (TASA) applies to individuals and entities acting as Tax Agent Services providers in Australia. The Act regulates the conduct of tax agents and Business Activity Statement (BAS) agents, ensuring they meet certain standards and requirements. The Tax Practitioners Board, established under this Act, has the authority to register and regulate these professionals, impose penalties, and terminate registrations if necessary. The Act's jurisdiction covers the entire Commonwealth of Australia, ensuring a uniform approach to the regulation of tax agents across the nation. The Act includes provisions for exclusions and exemptions, although specific details on these are not provided in the gazette. The application of the Act can be extended or restricted through subordinate instruments, such as regulations or codes of conduct, which provide further detail on compliance and professional standards.

Key Provisions

The main operative sections of the Gazette C2018G00147 relate to the termination of Business Activity Statement (BAS) agent registrations under the Tax Agent Services Act 2009 (TASA). Section 40-40 of the Act specifies the conditions under which the Tax Practitioners Board can terminate a BAS agent's registration. The Gazette lists the names of various BAS agents whose registrations have been terminated, along with the effective date and reason for termination. Reasons for termination include voluntary surrender (section 40-40(1)(a)), cessation of business operations (section 40-40(1)(b)), and failure to comply with the code of professional conduct (section 30-165). The Gazette provides a comprehensive list of agents affected, detailing the specific circumstances leading to the termination of their registrations. The Act imposes several obligations and requirements on the parties it governs. BAS agents must adhere to the code of professional conduct outlined in Division 3 of Part 3-1 of the Act. This includes maintaining professional integrity, acting in the best interests of their clients, and ensuring compliance with all relevant tax laws and regulations. The Tax Practitioners Board is tasked with overseeing these obligations and has the authority to terminate registrations if an agent fails to comply with the Act or its regulations. Additionally, agents are required to notify the Board of any changes to their business status or personal details promptly. Failure to comply with the provisions of the Tax Agent Services Act 2009 can result in serious consequences. Under section 30-165, an agent who breaches the code of professional conduct may face termination of their registration. For those whose registrations have been terminated due to non-compliance, there are potential civil and criminal penalties. These include fines, restitution, and in severe cases, imprisonment. For example, under section 335-10 of the Act, individuals found guilty of dishonestly causing a loss to the Commonwealth can be fined up to 10,000 penalty units or imprisoned for up to five years, or both. Furthermore, the Act allows the Tax Practitioners Board to disqualify individuals from holding a tax agent registration for up to five years if they are found to have acted dishonestly or incompetently.