Termination of BAS agent registrations - June 2018

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Parliament of Australia to establish a regulatory framework for tax agents and BAS agents. The Act aims to ensure that tax practitioners maintain high standards of professional conduct and competence, thereby protecting the public interest and maintaining the integrity of the taxation system. The Act addresses the problem of unregulated and potentially unscrupulous tax agents by requiring registration and adherence to a code of professional conduct. Recently, the Tax Practitioners Board has exercised its authority under the Act to terminate the registrations of several BAS agents, either due to surrender or failure to comply with the code of professional conduct, reflecting the Board's commitment to enforcing standards and maintaining trust in the tax profession.

Scope and Application

The Tax Agent Services Act 2009 (TASA) applies to tax practitioners, including BAS agents, who provide tax services to clients. This federal legislation governs the conduct, professional standards, and registration of tax agents operating within Australia. The Act's application extends across the Commonwealth, ensuring consistent regulation of tax agents regardless of state or territory boundaries. The Tax Practitioners Board, established under the Act, has the authority to register, monitor, and discipline tax agents to uphold professional standards. The Act includes specific provisions for the termination of registration, such as under subdivisions 40-A and 30-B, which cover instances like surrender of registration or failure to comply with the code of professional conduct. The Act also provides for certain exclusions and exemptions, although these are not extensively detailed in the gazette. The Board's decisions to terminate registrations are detailed in the gazette, specifying the effective dates and reasons for each termination, ensuring transparency and accountability in the tax agent profession.

Key Provisions

The primary sections of the Tax Agent Services Act 2009 (TASA) that are relevant to the termination of BAS agent registration are found in subdivisions 40-A and 30-B. Section 40-12 (subsection 40-12(1)) allows the Tax Practitioners Board to terminate the registration of a BAS agent if the agent has surrendered their registration, which was the case for most of the agents listed. Conversely, Section 30-60 (subsection 30-60(1)) provides the Board the authority to terminate registration for failure to comply with the code of professional conduct, as seen in the termination of Donna Ansell's registration. In terms of obligations and requirements, the Act imposes several duties on BAS agents. These include adhering to a code of professional conduct, maintaining professional indemnity insurance, and continuing professional development to ensure competence and integrity in their dealings. The Act also mandates that agents must notify the Board of certain events, such as changes in personal circumstances or business structure, which could affect their eligibility to hold a registration. The consequences for non-compliance with the Act are outlined in Section 40-15 (subsection 40-15(1)) and Section 30-65 (subsection 30-65(1)), which deal with penalties for unauthorised conduct and failure to comply with the code of conduct, respectively. For instance, unauthorised conduct can lead to civil penalties, including fines of up to $22,200 per contravention for individuals and $111,000 for bodies corporate. Additionally, the Act empowers the Administrative Appeals Tribunal to hear appeals against decisions made by the Tax Practitioners Board, providing a legal recourse for affected agents. The seriousness of the penalties reflects the importance of compliance with the professional standards set by the Act.