Termination of BAS agent registrations - July 2019

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Australian Parliament to address the need for a regulatory framework governing the conduct and registration of tax agents, including BAS agents, to ensure public protection and the integrity of the tax system. The Act aims to provide for the registration of tax practitioners, the establishment of the Tax Practitioners Board, and to ensure that registered tax practitioners meet certain professional standards. The termination of BAS agent registrations under this Act signifies a measure to maintain the quality and reliability of tax services provided to the public, ensuring that only qualified and compliant practitioners remain registered. The policy objective of TASA is to safeguard the interests of taxpayers by ensuring that tax agents are competent, trustworthy, and adhere to ethical standards in their professional activities.

Scope and Application

The Tax Agent Services Act 2009 (TASA) applies to registered tax (including BAS) agents who provide services related to the preparation of tax returns, activity statements, or other documents required by the Commissioner of Taxation. The Act operates nationally across Australia and applies to any person or entity providing tax agent services in any capacity. The Act's jurisdiction is established under the Commonwealth, although it may also intersect with state and territory laws where they pertain to professional conduct and business operations. There are no specific exclusions or exemptions mentioned in this excerpt, but it is likely that the Act includes provisions for such scenarios in other sections. The Act may extend its application through subordinate instruments, such as regulations and guidelines, which provide further detail on the requirements and standards expected of registered tax agents. This ensures the Act's provisions are effectively implemented and enforced across the country.

Key Provisions

The document C2020G00779 (Gazette) issued by the Tax Practitioners Board under the Tax Agent Services Act 2009 (TASA) provides information on the termination of the registrations of various BAS agents. According to section 40-60(1) of the TASA, the Board has the authority to terminate the registration of BAS agents under certain circumstances, such as when a practitioner surrenders their registration. Section 40-60(2) further states that the Board must publish the details of the termination in the Gazette, which this document does. The effective termination dates for all listed agents are 9/07/2019, and the reason provided for each is a voluntary surrender of their registration. The obligations imposed on the BAS agents by the Act include adherence to professional standards and ongoing compliance with the Board’s regulations. Each agent must maintain the requisite qualifications and professional indemnity insurance as mandated by the Act. They must also ensure that they operate within the scope of their registration and comply with any additional requirements set forth by the Board. The surrender of their registration signifies their voluntary relinquishment of their authority to act as a BAS agent, which effectively ends their obligations under the TASA. Failure to comply with the requirements of the Act can lead to serious consequences. Section 40-140 of the TASA outlines various offences related to the unauthorised practice of tax or BAS agent services. Under section 40-140(1), individuals or entities found guilty of such offences can be subject to penalties. The maximum penalty for an individual offender is a fine of up to 200 penalty units or imprisonment for up to two years, or both, as per section 40-140(2). For corporate entities, the maximum penalty can reach up to 10,000 penalty units, as per section 40-140(3). These provisions underscore the importance of adhering to the Act’s stipulations to avoid legal repercussions.