Termination of tax agent registration - April 2019

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Parliament of Australia to establish a regulatory framework governing the conduct and registration of tax agents in Australia. This Act was introduced to address the need for a structured oversight of tax agents, ensuring that they adhere to professional standards and are competent in providing tax services. The primary objective of the Act is to protect the public by ensuring that tax agents are suitably qualified, competent, and act in accordance with the code of professional conduct. The Act empowers the Tax Practitioners Board to oversee the registration and conduct of tax agents, including the power to terminate registrations for various reasons, such as ceasing to meet the registration requirements, surrendering the registration, or failing to comply with the professional conduct code.

Scope and Application

The Tax Agent Services Act 2009 (TASA) applies to tax agents who are registered to provide tax agent services in Australia. The Act regulates the conduct and professional standards of tax agents, ensuring that they comply with the relevant legislative and regulatory requirements. The Act applies to both individuals and entities that provide tax agent services, and it covers a range of industries and transactions that involve taxation matters. The Act has a national jurisdictional reach, as it is a Commonwealth Act that applies across Australia. The Act may be extended or restricted through subordinate instruments, such as regulations or codes of conduct, which provide further detail on the specific requirements for tax agents. The Act may also exclude or exempt certain tax agents or services from its application, such as those that are provided by the Australian Taxation Office or by tax agents who hold a practising certificate from a legal professional body. The Act provides for the termination of tax agent registration in certain circumstances, such as when a tax agent ceases to exist, surrenders their registration, or fails to comply with the code of professional conduct.

Key Provisions

The Tax Agent Services Act 2009 (TASA) under sections 40-75 and 30-145 includes provisions for the termination of tax agent registrations. Under section 40-75, the Tax Practitioners Board (TPB) can terminate a tax agent's registration if the agent ceased to exist, such as the case with All Business Names Pty Ltd. Section 40-75 also allows the TPB to terminate a tax agent’s registration if the agent ceased to meet one of the tax practitioner registration requirements, which applies to Ambrish Diwakar, Sandra Lee Koschel, and Thi Cam Tu Nguyen. Under section 30-145, the TPB can terminate a tax agent's registration for failure to comply with the code of professional conduct, which applies to AD Taxation & Financial Services Pty Ltd, Mark William Richardson, and Warren David Blackman. The TPB imposes obligations on tax agents to maintain their registration by meeting all requirements, including those related to professional conduct and existence. Agents must ensure that they remain compliant with the conditions of their registration, such as adhering to the code of professional conduct and maintaining their business operations. The TPB monitors compliance and has the authority to terminate registrations when these obligations are not met. Under section 40-80 of the Act, tax agents who fail to meet the registration requirements or comply with the code of professional conduct face termination of their registration. This can result in the agent being unable to provide tax services and potentially facing legal repercussions. The Act does not specify financial penalties for these breaches but implies that the termination of registration itself is a significant consequence. For serious breaches of the code of professional conduct, further disciplinary actions may be taken by the TPB as outlined in section 30-150, which could include fines or additional sanctions.