Termination of BAS agent registrations - March 2020

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Australian Parliament to regulate the conduct of tax practitioners, including BAS agents, and to ensure that they provide services with integrity and competence. The Act aims to protect the public by ensuring that tax practitioners are suitably qualified, competent, and fit to hold a registration. One of the key functions of the Tax Practitioners Board, established under this Act, is the regulation and oversight of BAS agents, including the ability to terminate registrations when necessary. The gazette C2020G00803 lists multiple instances of BAS agent registrations that have been terminated, primarily by surrender or because the entity ceased to exist. The terminations are effective as of specific dates in March 2020 and were carried out in accordance with subdivision 40-A of the Act, reflecting the Board's commitment to maintaining high standards within the profession.

Scope and Application

The Termination of BAS agent registration gazetted under C2020G00803 pertains to the cessation of registration of specific BAS agents under the Tax Agent Services Act 2009 (TASA). This Act applies to individuals and entities that have been registered as BAS agents, encompassing their conduct and transactions as tax practitioners. The legislation operates on a Commonwealth level, regulating the conduct of BAS agents across Australia. The geographic reach of the Act is thus national, applying uniformly across all states and territories of Australia. The gazetted terminations were effective due to various reasons including surrender of registration or the entity ceasing to exist. It is noted that the application of the Act may be extended or restricted through subordinate instruments, although the current gazette does not specify any such instruments. The gazette itself does not outline exclusions, exemptions, or specific thresholds for termination, but it is clear that the decisions to terminate are based on the actions or circumstances of the individual or entity in question.

Key Provisions

The Gazette (C2020G00803) lists the termination of registrations of various BAS agents under the Tax Agent Services Act 2009 (TASA). Specifically, section 131 of the Act allows the Tax Practitioners Board (TPB) to terminate registrations. The gazetted list details the names of BAS agents, the effective date of termination, and the reason, which is predominantly "Surrender" by the agents themselves (section 131(2)). The list includes a range of entities, from sole traders to companies, all having their registrations terminated from dates between 10 March 2020 and 31 March 2020. The obligations under the Act for these terminated agents primarily involve ceasing any activities that fall under the scope of their BAS agent registration. This means they can no longer provide BAS agent services, which include preparing and lodging business activity statements, and other related tax services. Agents must also ensure they comply with any final reporting or administrative requirements stipulated by the TPB before the termination takes effect. Compliance with these obligations is crucial to avoid any further action or penalties from the TPB. Failure to comply with the Act's provisions, including not ceasing activities post-termination, can lead to significant consequences. Section 286 of the TASA outlines that unauthorised practice as a tax (or BAS) agent after termination is an offence. Such breaches can result in substantial penalties, including fines of up to $22,200 for individuals and $111,000 for bodies corporate, as well as potential criminal charges. The seriousness of these penalties underscores the importance of adhering to the Act’s requirements and the TPB’s decisions regarding registration status.