Termination of BAS agent registrations - October 2017

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Parliament of Australia to address the need for a regulatory framework governing tax agents and BAS agents. It was designed to ensure that tax agents and BAS agents operate with integrity, competence, and in compliance with professional standards. The policy objective of TASA is to protect the public from unscrupulous practices by ensuring that tax agents and BAS agents meet certain qualifications and adhere to a code of professional conduct. Recently, the Tax Practitioners Board has terminated the registration of several BAS agents and tax agents under subdivisions 40-A and 30-B of the Act. These terminations were due to reasons such as surrender of registration, death of the agent, or failure to comply with the code of professional conduct.

Scope and Application

The Tax Practitioners Board has the authority to terminate the registration of BAS agents and tax agents under the Tax Agent Services Act 2009 (TASA), which applies at the Commonwealth level. The Act applies to individual tax practitioners and entities providing tax agent services in Australia, encompassing a range of conduct and transactions related to the registration and professional obligations of tax agents. The termination of registration may occur for reasons such as surrender of registration, failure to comply with the code of professional conduct, or the cessation of the entity's existence. The jurisdiction of this legislation is national, and it applies to all tax agents registered under the Act. There are no stated exclusions or exemptions in the provided text, and the application of the Act may be further defined through subordinate instruments.

Key Provisions

The key provisions of the Tax Agent Services Act 2009 (TASA) relevant to the termination of BAS agent and tax agent registrations are found in subdivisions 40-A and 30-B respectively. Under section 40-A, the Tax Practitioners Board can terminate a BAS agent's registration if the agent surrenders their registration, ceases to exist, or due to other specified reasons. Similarly, under section 30-B, the Board can terminate a tax agent's registration for failure to comply with the code of professional conduct or other specified reasons. In the notice provided, the Board has terminated the registrations of various BAS agents and tax agents, with reasons including surrender, failure to comply with the code of professional conduct, and cessation of existence. The Act imposes several obligations and requirements on BAS agents and tax agents. These include maintaining professional competence and integrity, adhering to a code of professional conduct, and ensuring that their registration details are up-to-date and accurate. Agents must also notify the Board of any changes in their circumstances that could affect their eligibility to hold a registration. Additionally, they are required to provide clients with certain information, such as their registration status and any disciplinary actions taken against them. Failure to meet these obligations can result in the termination of their registration. The Act also outlines various offences, penalties, and consequences for breach of its provisions. For example, section 146 of the Act provides that a person who provides tax agent services without holding a valid registration commits an offence. This is a strict liability offence, meaning that the person does not need to have intended to commit the offence. The maximum penalty for this offence is 200 penalty units, which is approximately AUD 42,500 as of 2023. Similarly, section 147 provides that a person who makes a false or misleading statement in an application for registration commits an offence. The maximum penalty for this offence is also 200 penalty units. Other offences and penalties are outlined in the Act, and the severity of the penalty often depends on the nature and severity of the breach.