Termination of BAS agent registrations - June 2020

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Australian Parliament to address issues surrounding the registration, conduct, and regulation of tax agents and Business Activity Statement (BAS) agents. The Act aims to protect the public interest by ensuring that tax agents and BAS agents meet professional standards and comply with ethical requirements. The Tax Practitioners Board, established under this Act, is responsible for the registration and ongoing regulation of these professionals. The policy objective of the Act is to maintain a high standard of professional conduct and competence among tax practitioners, thereby enhancing the integrity of the tax system and protecting consumers from unscrupulous or incompetent agents. The termination of registrations, as seen in the gazette, serves to uphold these objectives by removing agents who no longer meet the requisite standards from the register of tax agents.

Scope and Application

The Tax Agent Services Act 2009 (TASA) applies to tax agents and BAS agents who provide tax services to the public in Australia. The Act sets out the requirements for the registration and conduct of these professionals, ensuring that they meet certain standards of competence and integrity. The termination of registration as described in the gazette indicates that the Tax Practitioners Board has the authority to revoke the registration of tax agents or BAS agents under specific conditions, such as surrender, which appears to be the common reason in these cases. The jurisdictional reach of the Act is national, as it pertains to the Commonwealth of Australia and its territories, with the Tax Practitioners Board operating under the auspices of the federal government. There are no explicit exclusions mentioned in the gazette; however, the Act itself may contain provisions that exclude certain types of tax services or agents from its purview. The application of the Act can be further detailed through subordinate instruments, which may provide additional clarification or criteria for enforcement.

Key Provisions

The Tax Agent Services Act 2009 (TASA) provides the legislative framework for the regulation of tax practitioners in Australia. Under subdivision 40-A of the Act (sections 40-10 to 40-20), the Tax Practitioners Board has the authority to terminate the registration of tax agents. The gazetted document C2020G00952 notifies the public of the termination of registration for specific agents, effective from 9 June 2020, with the reason for termination listed as ‘Surrender’. This means that the agents themselves have voluntarily surrendered their registration. The termination affects multiple entities and individuals, each listed with their name and the date of termination. The obligations imposed by the Act on tax agents include maintaining their registration and complying with the standards and requirements set forth by the Tax Practitioners Board. These obligations extend to adhering to professional conduct and ethical standards, ensuring compliance with taxation laws, and participating in continuing professional education. Any tax agent whose registration is terminated must cease to act as a tax agent and cannot provide tax agent services without being re-registered. The agents named in the gazette must now take steps to ensure that they do not inadvertently continue to provide such services, which could result in further legal consequences. Failure to comply with the Act's provisions can result in significant penalties and consequences. The Act outlines various offences that can lead to termination of registration, including professional misconduct, criminal convictions related to financial activities, and failure to meet the continuing professional education requirements. Under section 147 of the Act, the maximum penalty for practising as a tax agent without a current registration can be substantial fines and imprisonment. For each agent listed, the termination of registration is a formal acknowledgment that they have breached the requirements of the Act, either by their own admission or through the Board's investigation. These agents now face the possibility of further legal action if they continue to provide tax agent services without proper registration.