Termination of BAS agent registrations - May 2020

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Parliament of Australia to establish a regulatory framework governing the conduct and activities of tax agents and BAS agents in Australia. The Act was introduced to address the need for a structured approach to the regulation of tax practitioners, ensuring that they meet professional standards and are competent to provide tax services to the public. The primary policy objective of TASA is to protect consumers by ensuring that tax practitioners are suitably qualified, competent, and ethical, and to maintain public confidence in the tax system. The Act is administered by the Tax Practitioners Board, which has the authority to register tax practitioners, oversee their conduct, and take action against those who do not comply with the regulatory requirements. On 12 May 2020, the Tax Practitioners Board announced the termination of the registrations of several BAS agents under subdivision 40-A of the Tax Agent Services Act 2009 (TASA). The terminations were either due to the agents surrendering their registrations or the entities ceasing to exist. This action was taken to ensure compliance with the regulatory standards set out by the Act and to maintain the integrity of the tax practitioner profession. The Board, as the regulatory body, has the responsibility to monitor and enforce adherence to these standards, and in these instances, has exercised its powers to remove non-compliant agents from the register.

Scope and Application

The Tax Agent Services Act 2009 (TASA) applies to individuals and entities acting as tax agents in Australia, regulating their conduct and the transactions they undertake. This Act governs the registration, conduct, and professional standards of tax agents, ensuring compliance with prescribed regulatory requirements. The Act’s jurisdictional reach is primarily Commonwealth, impacting all tax agents across Australia who are registered under the Act. The scope extends to both individuals and entities providing tax agent services, with specific provisions for the surrender or cessation of registration due to various reasons, as evidenced by the termination notices issued by the Tax Practitioners Board. The Act also allows for the creation of subordinate instruments to further define or extend its application, ensuring that tax agents adhere to national standards and maintain professional integrity in their services.

Key Provisions

The Gazette C2020G00953 from the Tax Practitioners Board provides a list of tax agent registrations that have been terminated under the Tax Agent Services Act 2009 (TASA). The key sections of this Act, particularly those relevant to the termination of registrations, include section 40-10 which outlines the circumstances under which a registration may be terminated. Section 40-15 provides for the manner in which the Tax Practitioners Board may give notice of termination, while section 40-20 details the grounds for such terminations. The notice of termination must specify the reasons for the decision, and these reasons can include surrender of the registration, cessation of business, or other specified grounds as per section 40-10(2). The obligations imposed by the Act on the registered tax agents are primarily to comply with the standards set forth by the Tax Practitioners Board. These include maintaining professional indemnity insurance, adhering to the Tax Practitioners Board's Code of Professional Conduct, and ensuring that they possess the necessary qualifications and experience as per section 40-5. Agents are also required to notify the Board of any changes in their personal or business circumstances that could affect their eligibility to remain registered. Failure to meet these obligations can result in the termination of their registration, as evidenced by the entries in the Gazette. Breaches of the provisions outlined in the Act can lead to serious consequences. For example, knowingly providing false or misleading information to the Board can result in an offence under section 40-55, which carries a penalty of up to 2,000 penalty units, as per section 40-60. Additionally, any person who acts as a tax agent without being registered, or after their registration has been cancelled, commits an offence under section 40-65 and is liable for a penalty of up to 20,000 penalty units under section 40-70. These penalties reflect the seriousness with which the Act treats non-compliance and the importance of adhering to the Board's regulations.