Termination of tax agent registration - Tax Practitioners Board Gazette December 2016

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Commonwealth Parliament to address the need for a regulatory framework governing the conduct and registration of tax agents in Australia. The Act seeks to ensure that tax agents operate with integrity and competence, protecting the public interest by maintaining high standards of professional conduct and ethical behaviour within the tax profession. The policy objective of the Act is to enhance the quality of tax services provided to the community, thereby fostering trust and confidence in the tax system. The Tax Practitioners Board, established under the Act, is responsible for the registration and regulation of tax agents, including the power to terminate registrations where necessary to uphold these standards. The Gazette extract from 2017 details the termination of tax agent registrations, illustrating the Board's enforcement actions in response to both voluntary surrenders and failures to comply with the professional conduct code.

Scope and Application

The Tax Agent Services Act 2009 (TASA) applies to tax agents who provide tax agent services in Australia, with the primary focus being on ensuring the competence and ethical conduct of those who offer such services. The Act applies to individual tax agents and entities that provide tax agent services, regulating their professional activities, including the provision of advice, preparation of documents, and representation in dealings with the Australian Taxation Office. The geographic reach of the Act is national, extending across the Commonwealth of Australia, and it applies uniformly regardless of the state or territory in which the services are provided. The Act includes provisions for the registration and ongoing regulation of tax agents, including the authority to terminate registrations under specific circumstances as outlined in the Gazette. The termination of registrations can occur either by surrender of the registration or due to failure to comply with the code of professional conduct, among other reasons. The Act does not explicitly state any exclusions, exemptions, or thresholds for its application, suggesting that it broadly covers all tax agents operating within the Australian jurisdiction. The application of the Act can be extended or further defined through subordinate instruments such as regulations or codes of conduct, which provide additional detail on the implementation and enforcement of the Act's provisions.

Key Provisions

The Tax Agent Services Act 2009 (TASA) contains provisions for the regulation of tax agents in Australia, and specifically, section 40-35 (subsections 40-35(1) and 40-35(2)) provides the authority for the Tax Practitioners Board to terminate a tax agent's registration. These terminations can occur either by surrender (section 40-35(1)) or due to failure to comply with the code of professional conduct (section 40-35(2)). The Gazetted notice (C2017G00054) lists numerous instances where the Board has exercised this power. For example, Active Accountants Anywhere Pty Ltd had its registration terminated by surrender on 13/12/2016, while Alfio Rosario Sciacca's registration was terminated for failure to comply with the code of professional conduct on 12/12/2016. The Act imposes specific obligations on tax agents to maintain their registration and adhere to professional conduct standards. Under section 40-15, tax agents must apply for renewal of their registration, and failure to do so may lead to termination as seen in the Gazetted notice. Furthermore, section 40-20 mandates that tax agents comply with the code of professional conduct, which includes standards of competence, integrity, and confidentiality. Any breach of these standards can result in the termination of their registration, as evidenced by the terminations due to failure to comply with the code of professional conduct. Failure to comply with the provisions of the Tax Agent Services Act 2009 can lead to significant consequences. Section 40-40 outlines that termination of registration is a potential outcome for both surrender and breaches of the code of professional conduct. This termination means the tax agent is no longer authorised to provide tax agent services. Additionally, under section 40-45, the Board may also impose fines or other penalties for breaches of the Act. The maximum penalties are specified within the Act and can vary based on the nature and severity of the breach, providing a deterrent against non-compliance.