Termination of BAS agent registrations - June & July 2017

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Parliament of Australia to establish a framework for regulating tax agents and BAS agents, ensuring they comply with professional standards and maintain the integrity of the tax system. This legislation was introduced to address the need for a more structured and regulated environment for those providing tax services, aiming to protect consumers by ensuring that tax practitioners meet certain competency and ethical standards. The Act provides a comprehensive regulatory scheme that includes the registration, conduct, and professional standards of tax agents and BAS agents. The policy objective behind TASA is to safeguard the public interest by ensuring that tax agents and BAS agents are competent, ethical, and accountable in their professional activities. The Tax Practitioners Board, as the regulatory authority under TASA, has the responsibility to administer and enforce the provisions of the Act. The Board has the power to terminate the registration of BAS agents under subdivision 40-A of the Act if certain conditions are met, such as the agent surrendering their registration or ceasing to exist. The termination of registration is a significant action that reflects the Board's commitment to maintaining high standards within the tax agent profession and protecting the interests of consumers who rely on these services.

Scope and Application

The Tax Agent Services Act 2009 (TASA) governs the regulation of tax practitioners in Australia, ensuring that only qualified individuals and entities provide tax services to the public. The Act applies to both individual tax practitioners and corporate entities engaged in tax services, encompassing a broad range of conduct and transactions involving the preparation and lodgement of tax returns, BAS statements, and other tax-related activities. The jurisdiction of this Act is Commonwealth-wide, meaning it applies across all states and territories in Australia. The Act includes provisions for the registration and de-registration of tax agents, including BAS agents, and sets out the criteria and standards for professional conduct and competence. The Act can extend or restrict its application through subordinate instruments such as regulations and codes of conduct. The gazette notice specifies the termination of BAS agent registrations due to various reasons such as surrender or cessation of business, and these terminations are effective from the dates specified.

Key Provisions

The Gazette C2017G00900, issued under the Tax Agent Services Act 2009 (TASA), details the termination of registration for several BAS agents. This action is governed under subdivision 40-A of the TASA, which outlines the conditions under which the Tax Practitioners Board can terminate the registration of BAS agents. The Gazette specifies the names of the terminated agents, the effective date of the termination, and the reason for the termination, which in this case is primarily listed as 'Surrender' or in some instances, 'Cease to Exist' or 'Deceased'. The termination of these registrations imposes certain obligations and requirements on the affected BAS agents. Once their registration is terminated, these agents are no longer authorised to provide BAS agent services. The act also requires these agents to cease using any titles or descriptions that imply they are authorised BAS agents. This is to prevent any ongoing confusion or misrepresentation regarding their authorisation status. In terms of penalties and consequences for breach, the Gazette does not specify any penalties for the termination itself, as it is an administrative action. However, any continued practice of providing BAS services without proper authorisation post-termination could lead to further legal consequences. Such actions might be considered illegal practice of tax agent services, which could result in fines or other civil or criminal penalties under the TASA. For instance, unauthorised practice of tax services can attract fines of up to $21,000 for individuals and $105,000 for corporations, as stipulated in the legislation.