Termination of BAS agent registrations - July 2018

Overview

The Tax Agent Services Act 2009 (TASA) was enacted to regulate the conduct of tax practitioners, ensuring they meet professional standards and comply with legislative requirements. This Act was introduced to address the need for a robust regulatory framework governing tax agents and BAS agents, thereby protecting the public from unscrupulous practices and enhancing the integrity of the tax system. The Act was enacted by the Parliament of Australia, with the policy objective of ensuring that tax agents and BAS agents provide services with a high level of competence and integrity. The Tax Practitioners Board, established under this Act, is responsible for the registration and regulation of tax agents and BAS agents, including the ability to terminate registrations where necessary to uphold the standards of the profession.

Scope and Application

The Tax Agent Services Act 2009 (TASA) governs the conduct of tax practitioners in Australia, specifically targeting individuals and entities providing tax agent services. The Act applies to BAS agents who are required to hold a registration under subdivision 40-A of the Act, which is necessary for their professional engagement in activities related to Business Activity Statements. The geographic reach of TASA is national, as it applies across all states and territories of Australia. The Act includes provisions that allow for the termination of registrations, as evidenced by the list of BAS agents whose registrations have been terminated by the Tax Practitioners Board. The reasons for the terminations in this case are all listed as "surrender," indicating that the practitioners voluntarily gave up their registrations. The Act does not explicitly mention exclusions or thresholds but may extend its application through subordinate instruments, which are used to implement and regulate the specific requirements of tax agent services.

Key Provisions

The Gazette (C2018G00986) lists the termination of registrations of various BAS agents under the Tax Agent Services Act 2009 (TASA). These terminations, as per subdivision 40-A of the Act, were effective from 3 July 2018 and 24 July 2018 for different agents, with the common reason being the voluntary surrender of their registration. Section 136 of the TASA governs the termination of registration, allowing the Tax Practitioners Board (TPB) to terminate the registration of a BAS agent if they choose to surrender their registration or if the Board decides to terminate it for certain reasons, such as misconduct or non-compliance with the Act. The obligations imposed on BAS agents by the TASA include maintaining professional competence, acting with integrity and in the best interests of their clients, and complying with all relevant laws and regulations. These agents are also required to notify the TPB of any changes in their personal or business circumstances that may affect their registration. The Act also requires BAS agents to hold appropriate professional indemnity insurance and to keep accurate records of their work and client information. Under the TASA, failure to comply with the Act's provisions can result in civil and criminal penalties. For instance, section 134 of the Act states that an offence is committed if a person engages in conduct that constitutes professional misconduct or professional incompetence. Such an offence is punishable by a fine of up to 120 penalty units, which as of 2023, equates to approximately AUD 22,260 for individuals and AUD 111,300 for bodies corporate. Additionally, section 135 of the Act stipulates that a person who knowingly or recklessly engages in conduct that constitutes a serious breach of the Act commits an offence. This can result in a fine of up to 240 penalty units for individuals and up to AUD 222,600 for bodies corporate, or imprisonment for up to two years, or both. These penalties underscore the importance of compliance with the Act and the potential consequences of non-compliance.