Termination of BAS agent registrations - January 2020

Overview

The Tax Agent Services Act 2009 (TASA) was enacted to establish a regulatory framework for tax agents and BAS agents in Australia, aiming to protect consumers by ensuring that only qualified and compliant professionals provide tax services. The Act was introduced by the Australian Parliament with the policy objective of enhancing consumer confidence in the tax and BAS agent profession by setting standards for registration and professional conduct. The Tax Practitioners Board, established under the Act, is responsible for the administration and enforcement of these standards. Recently, the Board has taken action to terminate the registration of various BAS agents, effective from 14 January 2020, primarily due to voluntary surrender of their registrations or the cessation of their business operations. This regulatory action underscores the Board's commitment to maintaining the integrity of the BAS agent profession by removing unregistered or inactive agents from the register.

Scope and Application

The Tax Agent Services Act 2009 (TASA) applies to individuals and entities engaged in the provision of tax agent services in Australia. These services include preparing or assisting in the preparation of tax returns, providing tax advice, and representing clients in dealings with the Australian Taxation Office. The Act governs the conduct of tax practitioners and ensures they meet certain standards and obligations. It applies across the Commonwealth of Australia, encompassing all states and territories. The Act does not explicitly outline exclusions, exemptions, or specific thresholds, but the scope of application may be further defined through subordinate instruments, such as regulations or guidelines issued by the Tax Practitioners Board. These instruments may provide additional details on the registration process, professional standards, and specific conduct expectations for tax agents. The Act's termination of BAS agent registrations, as detailed in the gazette, reflects the Board's oversight and enforcement of compliance within the tax practitioner industry.

Key Provisions

The Gazette, C2020G00800, outlines the termination of Business Activity Statement (BAS) agent registrations under the Tax Agent Services Act 2009 (TASA). This action is taken by the Tax Practitioners Board (TPB) and is detailed under subdivision 40-A of the Act (sections 40-50 to 40-55). The gazette lists multiple BAS agents whose registrations have been terminated effective from 14 January 2020, along with a few exceptions where the termination took effect slightly earlier or was due to reasons other than surrender. The reasons for termination predominantly include the agents' own surrender of their registrations, with a small number due to the entities ceasing to exist or the individual agents passing away. These terminations impose specific obligations on the affected BAS agents, requiring them to cease any activities that necessitate a valid BAS agent registration. This includes ceasing to provide BAS agent services and ceasing to represent themselves as a BAS agent unless they have obtained a new registration. The agents must also ensure that any outstanding obligations or duties related to their former registration are fulfilled before the termination date. Furthermore, they must notify their clients of the termination and ensure a smooth transition of any ongoing BAS agent services to another registered agent. Breaches of the obligations imposed by the termination of registration can lead to civil or criminal consequences. Under the TASA, an unauthorised person acting as a BAS agent can face civil penalties, including fines of up to $12,600 for individuals and $63,000 for bodies corporate, as stipulated in section 138. Additionally, criminally, an individual can be fined up to $25,200 or imprisoned for up to two years, or both, under section 139 for acting as a BAS agent without a valid registration. These penalties underscore the importance of compliance with the TPB’s decisions regarding BAS agent registrations.