Termination of BAS agent registrations - June 2016

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Australian Parliament to regulate the conduct and activities of tax practitioners, including BAS agents, and to provide a framework for the registration and oversight of these professionals. The Act was introduced to address the need for a robust system to ensure that tax practitioners adhere to professional standards, thereby protecting the interests of taxpayers and maintaining the integrity of the tax system. The policy objective of the Act, as stated, is to ensure that tax practitioners provide services with competence, diligence, and integrity, and to safeguard the public from those who may be unfit to hold a registration. The Tax Practitioners Board, established under the Act, has the authority to terminate the registration of BAS agents who no longer meet the necessary standards or who have voluntarily surrendered their registration. This legislative framework aims to uphold the standards of the tax profession and to maintain public confidence in the tax system.

Scope and Application

The Termination of BAS agent registration notice issued under the Tax Agent Services Act 2009 (TASA) pertains to the termination of the registration of multiple Business Activity Statement (BAS) agents by the Tax Practitioners Board. This notice applies to specific individuals and entities whose registrations have been terminated, with the reasons for termination being listed as either a voluntary surrender or the death of the agent. The terminations are effective from specified dates, mostly 13/06/2016, with one exception being Cathy Judith Marsh, whose termination is effective from 20/06/2016 due to her death. The act applies to BAS agents across Australia, as the Tax Practitioners Board operates under federal jurisdiction. The notice itself does not detail any exclusions, exemptions, or thresholds, but these would typically be found within the provisions of the TASA and any related subordinate instruments. The legislation allows for the Board to manage and regulate the conduct of tax practitioners, ensuring compliance with professional standards and legal requirements.

Key Provisions

The Gazette C2016G00981 issued by the Tax Practitioners Board under the Tax Agent Services Act 2009 (TASA) lists the termination of BAS agent registrations for a number of entities and individuals. The main operative sections of this Gazette (subsections 40-65 and 40-75 of TASA) require the Board to publish such notifications when it terminates a registration, detailing the name of the agent, the effective date of the termination, and the reason for the termination. The Gazette specifies the date from which each registration is terminated and cites 'Surrender' as the reason in the majority of cases, with one case citing 'Deceased' as the reason. The obligations and requirements of the Act, as enforced by the Board, include the registration of BAS agents and the maintenance of those registrations under certain standards and conditions. The Board has the authority to monitor the conduct and competence of registered agents, and when it finds that an agent no longer meets the standards or conditions, it can terminate their registration. The Gazette serves as an official notification to the public and to relevant parties that these agents are no longer authorised to act as BAS agents. It is also a means for the Board to maintain the integrity and professionalism of the BAS agent profession. In terms of consequences for breach, TASA does not explicitly state penalties for non-compliance by the agents themselves in this Gazette. However, it is implied that continuing to act as a BAS agent after one’s registration has been terminated could lead to legal ramifications. For the Tax Practitioners Board, failure to properly follow the legislative requirements for the termination and notification process could potentially lead to administrative penalties or legal action. The penalties for acting as a BAS agent without proper registration can include fines and imprisonment under section 314 of the Criminal Code Act 1995, with the maximum penalty being 200 penalty units for individuals and 10,000 penalty units for bodies corporate, reflecting the seriousness of the breach in trust and professional conduct.