Termination of BAS agent registrations March 2017

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Commonwealth Parliament to regulate the conduct and practice of tax agents and BAS agents in Australia. The Act aims to ensure that tax practitioners act with integrity and competence, and to protect the public from unscrupulous or incompetent tax agents. The Act established the Tax Practitioners Board to oversee the registration and conduct of tax agents, including BAS agents, and to take action against those who fail to meet the required standards. The Gazette, C2017G00472, lists the termination of BAS agent registrations under the TASA, indicating the enforcement of the Act’s provisions to maintain professional standards within the tax industry. The policy objective is to ensure that tax practitioners provide services with honesty, diligence, and competence, thereby safeguarding the interests of taxpayers and the integrity of the tax system.

Scope and Application

The Tax Agent Services Act 2009 (TASA) applies to entities and individuals registered as BAS agents within Australia, regulating their conduct and the professional standards they must adhere to. The Act applies to BAS agents across the Commonwealth of Australia, ensuring uniform standards for tax agent registration and conduct throughout the nation. The Act provides for the termination of registrations under specific circumstances, including voluntary surrender by the agent or failure to comply with the code of professional conduct. The Act may also extend or restrict its application through subordinate instruments, allowing for detailed regulations and guidelines that further define the scope and operation of the legislation. There are no stated exclusions or exemptions in the gazetted terminations, and the thresholds for termination are defined within the Act and its regulations. The geographic reach of the Act is national, as it applies to all registered BAS agents operating within Australia, ensuring a consistent regulatory environment across all states and territories.

Key Provisions

The Tax Agent Services Act 2009 (TASA) provides a framework for the regulation of tax practitioners, including BAS agents. Under section 40-140 (subsection 40-140(1)), the Tax Practitioners Board is empowered to terminate the registration of a BAS agent. This action can be taken when the agent surrenders their registration under section 40-125, or in cases of failure to comply with the code of professional conduct as stipulated in section 30-100. The operative sections in this context are sections 40-125 and 30-100. The former allows for voluntary surrender of registration, while the latter pertains to mandatory termination due to breaches of professional conduct. The obligations imposed on BAS agents by the TASA include adherence to the code of professional conduct, which is outlined in section 30-100. Agents are required to conduct their affairs with integrity and competence, maintain confidentiality, and act in the best interests of their clients. Failure to comply with these professional standards can lead to the termination of their registration. Additionally, BAS agents must notify the Tax Practitioners Board of any changes to their personal or business details to ensure that the Board maintains accurate and current records. Breaching the code of professional conduct, as seen in the case of Kerry Pattinson, Muhammad Azhar Awan, and Herbert Emmanuwel Fernando, can result in the termination of the BAS agent's registration under section 40-140. Such terminations are effective immediately, as seen in the gazette, with the specified dates marking the loss of their registration. There are no explicit penalties or fines mentioned in the provided excerpt for these specific terminations, but the consequence is significant: the agents can no longer operate as registered BAS agents. This effectively bars them from providing tax agent services, which can have serious professional and financial implications.