Termination of BAS agent registrations - March 2019

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Parliament of Australia to address the need for regulation of tax practitioners, ensuring that individuals and entities providing tax services to the public meet certain standards of competence and integrity. The Act established the Tax Practitioners Board (TPB) to oversee the registration and conduct of tax agents, including BAS agents. The primary policy objective of the Act is to protect the public interest by ensuring that tax practitioners are suitably qualified and maintain professional standards. The TPB has the authority to terminate the registration of BAS agents who no longer meet the requirements or have surrendered their registration, as evidenced by the termination of multiple registrations on 29 March 2019 due to surrender of their registrations.

Scope and Application

The Gazette C2020G00102 pertains to the termination of Business Activity Statement (BAS) agent registrations under the Tax Agent Services Act 2009 (TASA). This Act applies to individuals and entities authorised as BAS agents who are responsible for preparing and lodging BAS statements for clients, ensuring compliance with tax obligations. The termination of registrations listed in the gazette indicates the cessation of their authority to act as BAS agents, effective from 29 March 2019, due to the agents' surrender of their registrations. The Tax Practitioners Board, which oversees the registration and conduct of tax practitioners in Australia, has the authority to terminate registrations based on the criteria set out in the Act, and this action applies nationally across Australia. The Act does not specify exclusions or thresholds for registration termination, but subordinate instruments or regulations may further define the conditions under which registrations can be terminated or suspended.

Key Provisions

The Tax Practitioners Board (TPB) has issued a notice under subdivision 40-A of the Tax Agent Services Act 2009 (TASA) (section 40-25), terminating the registration of numerous BAS agents. The termination of these registrations took effect on 29 March 2019 for all listed agents and entities. The reason given for the termination in each case is "Surrender," meaning that the BAS agents or entities voluntarily surrendered their registrations with the TPB. This act of surrender indicates that these registered agents have chosen to relinquish their status as authorised BAS agents, likely due to various reasons such as choosing to no longer provide BAS services, or possibly as a result of compliance issues or other factors prompting their decision to withdraw from registration. The Tax Agent Services Act 2009 (TASA) imposes specific obligations on BAS agents, including the requirement to maintain professional competence and integrity, to comply with continuing professional development (CPD) requirements, and to adhere to the Code of Professional Conduct (sections 99-10, 99-15, 99-25). These obligations are intended to ensure that BAS agents provide reliable and ethical services to their clients. Registered agents must also keep accurate and complete records of their activities and transactions for a specified period (section 40-15). These records must be readily accessible for inspection by the TPB to ensure compliance with the Act. Failing to meet these obligations can result in severe consequences. Under the TASA, serious misconduct or breaches of the Code of Professional Conduct can lead to the TPB terminating a BAS agent's registration (section 130-5). Additionally, the TPB has the authority to impose fines and other penalties for breaches of the Act or its regulations. For instance, section 159 of the TASA specifies that individuals found guilty of serious misconduct can be fined up to $21,000, while corporations can face fines of up to $105,000. Furthermore, the TPB can also refer matters to law enforcement agencies for potential criminal prosecution, which could lead to further penalties including imprisonment. These provisions underscore the importance of compliance with the Act for all registered BAS agents.