Termination of BAS agent registrations - September 2017

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Parliament of Australia to address issues related to the integrity, competence, and reliability of tax agents and BAS agents. The Act establishes a regulatory framework to ensure that tax agents and BAS agents comply with professional standards and ethical requirements, thereby protecting the interests of taxpayers and maintaining the integrity of the tax system. The Tax Practitioners Board, established under the Act, is responsible for the registration and regulation of tax agents and BAS agents. The policy objective of the Act is to ensure that tax practitioners provide services with due care, diligence, and skill, thereby fostering public confidence in the tax system. The Board’s authority to terminate registrations, as evidenced by the recent terminations listed in the gazette, underscores its commitment to upholding these standards.

Scope and Application

The Tax Agent Services Act 2009 (TASA) applies to persons and entities registered as BAS agents, who must adhere to the standards and regulations set forth by the Tax Practitioners Board. The Act governs the registration, conduct, and professional obligations of BAS agents within Australia, ensuring that they meet specific competency and ethical standards. The geographic reach of the Act is national, applying across all states and territories within Australia. The Act allows for the termination of registration based on various grounds, including voluntary surrender, cessation of business operations, or non-compliance with regulatory requirements. While the primary Act outlines the framework for BAS agent registration and conduct, further details and specific regulations may be established through subordinate instruments, thereby extending or restricting the application of the Act as necessary.

Key Provisions

The Tax Practitioners Board (TPB) has terminated the registration of several BAS agents under the Tax Agent Services Act 2009 (TASA) as per section 40-105 (subsection 40-105(1)). The terminations took effect on the dates specified, with the reasons cited uniformly as 'surrender'. For some entities, the reason is listed as 'ceased to exist', indicating that the entity is no longer operational. These actions are significant as they effectively remove these individuals and entities from the register of authorised BAS agents, prohibiting them from providing BAS-related services until their registration is reinstated. The obligations and requirements imposed by the Act on BAS agents are manifold. Primarily, agents must adhere to a code of professional conduct, maintain adequate professional indemnity insurance, and complete continuing professional education to stay current with legislative changes. Additionally, agents are required to notify the TPB of any changes in their personal or business circumstances that might affect their eligibility to hold a registration. For entities, there are additional requirements to ensure that the responsible individual(s) meet the criteria for registration. These obligations are critical to maintaining the integrity of the BAS agent profession and ensuring that clients receive services from competent and reliable professionals. Breaches of the Act can result in significant consequences, both civil and criminal. Under section 40-155, individuals found guilty of serious breaches may face fines up to $11,100 for individuals and $55,500 for bodies corporate, along with potential imprisonment. Additionally, section 40-160 allows for the imposition of pecuniary penalties for less serious breaches, with fines up to $6,600 for individuals and $33,000 for bodies corporate. The Act also provides for the cancellation of registrations, which not only imposes a financial penalty but also restricts the ability to provide BAS services, effectively barring the agent from the profession. These penalties underscore the seriousness with which the Act treats non-compliance and the importance of adhering to the stipulated requirements.