Termination of BAS agent registrations - October 2019

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Australian Parliament to address the need for regulation of tax agents and BAS agents in order to protect consumers and ensure that tax practitioners meet certain professional standards. The Act establishes the Tax Practitioners Board to oversee the registration and conduct of tax agents and BAS agents. The policy objective of the Act is to ensure that tax practitioners provide professional and competent services to their clients, thereby promoting confidence in the tax system and ensuring that the rights and interests of taxpayers are protected. The Act aims to achieve this objective by setting standards for the registration, education, and conduct of tax practitioners, as well as providing mechanisms for the enforcement of these standards.

Scope and Application

The Tax Practitioners Board has notified the termination of registration of several Business Activity Statement (BAS) agents under the Tax Agent Services Act 2009 (TASA). This Act applies to entities and individuals who provide tax agent services, including BAS agents, and mandates their registration with the Tax Practitioners Board. The geographic reach of this Act is national, applying to all jurisdictions within Australia, as the Tax Practitioners Board operates under the Commonwealth. The termination of registration is applicable to BAS agents who have either surrendered their registration, ceased to exist, or in the case of an individual agent, passed away. This list includes both corporate entities and individual practitioners, and the reasons for termination vary, predominantly being voluntary surrender, with one instance being the death of the agent. There are no stated exclusions or exemptions in this particular notification, and the Act allows for further regulation through subordinate instruments, which can provide additional details or stipulations regarding the termination process or the conduct of BAS agents.

Key Provisions

The Tax Practitioners Board has terminated the registration of a number of BAS agents under subdivision 40-A of the Tax Agent Services Act 2009 (TASA). These terminations are effective from either 1 October 2019 or 22 October 2019, with the reason for termination being either surrender or cessation of existence, except for one instance where the reason is noted as deceased. The entities and individuals whose registrations have been terminated include Achka Pty Ltd, Andrew Kenneth Rankin, Andrew Lockhart Walker, Audrey Barrett, Bedrock Bookkeepers Pty Ltd, and many others. The terminations are part of the administrative process overseen by the Tax Practitioners Board, ensuring compliance with the regulatory framework governing BAS agents. The obligations imposed on BAS agents under the Tax Agent Services Act 2009 (TASA) include maintaining the required standards of professional competence and integrity, ensuring that their services comply with the law, and adhering to the continuing professional education requirements. The termination of a BAS agent's registration indicates a failure to meet these obligations, whether through voluntary surrender or due to other circumstances such as ceasing to exist or the death of an individual registrant. It is important for all registered BAS agents to understand these obligations and to take proactive steps to ensure ongoing compliance. Failure to meet the obligations set forth in the Tax Agent Services Act 2009 (TASA) can result in various consequences, including the termination of registration, which is evidenced by the cases detailed in the gazette. Such terminations not only prevent the agents from continuing their practice but may also lead to further legal actions, including the imposition of penalties and sanctions. For instance, while specific penalties are not outlined in the gazette, the Act generally provides for fines, imprisonment, or both, depending on the severity of the breach. It is crucial for BAS agents to understand the potential civil and criminal consequences of non-compliance to avoid such outcomes.