Termination of BAS agent registrations - September 2020

Overview

The Tax Agent Services Act 2009 (TASA), enacted by the Commonwealth Parliament, was introduced to regulate the conduct and practice of tax agents in Australia. The Act aims to ensure that tax practitioners adhere to professional standards and are fit and proper persons to hold a tax agent registration. The Act provides for the registration and regulation of tax agents, including Business Activity Statement (BAS) agents, and establishes the Tax Practitioners Board to oversee the profession. The recent gazette C2020G00991 from the Tax Practitioners Board informs the public of the termination of several BAS agents’ registrations, effective from various dates in September 2020, primarily due to surrender of their registrations or other reasons such as the death of the agent. The policy objective of this legislation is to maintain the integrity of the tax profession by ensuring that only qualified and compliant professionals provide tax services to the public.

Scope and Application

The Tax Agent Services Act 2009 (TASA) governs the conduct, registration, and professional standards of tax agents and BAS agents in Australia. This Act applies to all individuals and entities providing tax agent services, including the preparation of tax returns, business activity statements, and other related services. The legislation ensures that tax agents adhere to professional standards and maintain the integrity of the tax system. The Act operates across the Commonwealth of Australia, thereby encompassing all states and territories uniformly. Certain exclusions and exemptions may apply, particularly regarding the scope of registration requirements, which can be further defined through subordinate instruments. The termination of registrations, as indicated in the Gazette, involves specific individuals and entities whose registrations were voluntarily surrendered or due to death, thereby ceasing their authority to act as authorised tax or BAS agents under the Act.

Key Provisions

The gazette issued under the Tax Agent Services Act 2009 (TASA) informs of the termination of registrations of multiple BAS agents by the Tax Practitioners Board. This includes both individual agents and entities such as companies. The terminations were executed under subdivision 40-A of TASA, which provides the legal framework for such actions. Each termination notice specifies the agent’s name, the effective date of the termination, and the reason, which in this case is the surrender of the registration. The terminations were effective from various dates in September 2020, with the earliest being 1 September 2020, and the latest being 26 September 2020. The reasons given for the terminations are primarily the surrender of the registration, although there are a few instances of termination due to the death of the registrant. Under TASA, the Tax Practitioners Board has a responsibility to ensure that tax agents meet certain professional and ethical standards. The Board can terminate a registration if an agent no longer meets these standards or if the agent voluntarily surrenders their registration. The terminated agents are no longer authorised to provide tax agent services under the Act. The obligations imposed on these agents primarily involve ceasing all activities that require a valid BAS agent registration and ensuring that any ongoing client matters are appropriately managed and transferred to other registered agents, if necessary. Failure to comply with the terms of the termination could result in further legal consequences. The Act also outlines specific offences and penalties for breaches of its provisions. For example, providing tax agent services without a valid registration is an offence under section 145 of TASA, and can lead to criminal penalties. The maximum penalty for such an offence is generally a fine of up to $21,000 for individuals and $105,000 for bodies corporate, as well as potential imprisonment terms. Additionally, civil penalties can be imposed for breaches of the Act, which can include fines of up to $10,500 for individuals and $52,500 for bodies corporate. These provisions serve as a deterrent to non-compliance and reinforce the importance of adhering to the regulatory framework established by TASA.