Termination of tax agent registration, Termination of BAS agent registration, Suspension of tax agent registration

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Parliament of Australia to regulate the activities of tax agents and BAS agents, ensuring that they meet professional standards and comply with the law. This Act was introduced to address the need for a regulatory framework governing the conduct of tax agents, aiming to protect the public by ensuring that those providing tax services are qualified, competent, and act in the best interest of their clients. The Tax Practitioners Board, established under this Act, is responsible for the registration and ongoing regulation of tax agents and BAS agents. The policy objective of the Act is to maintain high professional standards within the tax services industry, thereby safeguarding the integrity of the tax system and enhancing public confidence in tax agents and BAS agents.

Scope and Application

The Tax Agent Services Act 2009 (TASA) governs the registration, conduct, and professional standards of tax agents and BAS agents in Australia. This Act applies to individuals and entities that provide tax agent services, including the preparation and lodgement of tax returns and Business Activity Statements (BAS) for clients. The legislation covers a wide range of entities, from sole practitioners to corporate entities, ensuring compliance with specific standards and professional conduct requirements. The Act applies nationally, meaning it has jurisdiction across all states and territories in Australia. However, the Act does not extend to state or territory-specific tax matters that fall under the purview of state or territory legislation. Certain exclusions exist within the Act, such as the exemption of financial institutions and government agencies from registration requirements if they perform tax agent services as an ancillary function to their primary business. The Act also delineates thresholds for certain activities, such as the requirement for tax agents to hold professional indemnity insurance. Additionally, the Act allows for the extension and restriction of its application through subordinate instruments, which provide further detail on specific provisions and operational guidelines for the Tax Practitioners Board.

Key Provisions

The Gazette (C2013G00454) informs that the Tax Practitioners Board has terminated the registration of several tax agents and BAS agents under the Tax Agent Services Act 2009 (TASA). Specifically, Section 40-10 of TASA requires that the Board terminate registration upon certain events, such as the agent's death or surrender of their registration. In this instance, the terminations were effective from either 8/3/2013 or 11/2/2013, with reasons ranging from death to voluntary surrender of the registration. The Board has also suspended the registration of some tax agents for failure to comply with the code of professional conduct, a process governed under Section 30-55 of TASA. The suspension of David Jacobs, for example, was due to non-compliance with the code and is effective from 28/2/2013 until 28/8/2013. The obligations under TASA for tax agents and BAS agents include maintaining professional standards and complying with the code of conduct. Agents must adhere to these standards to ensure they provide services competently and ethically. Failure to meet these obligations can result in the termination or suspension of their registration, as seen in the gazetted cases. Agents are also required to notify the Board of any changes to their personal or business circumstances that might affect their registration status. Breaching the provisions of TASA can lead to severe consequences. For example, continuing to act as a registered tax agent after termination or suspension is an offence under Section 95 of TASA and can result in civil penalties. The maximum penalty for such an offence is $22,200 for individuals and $111,000 for corporations. Additionally, knowingly or recklessly contravening certain provisions can lead to criminal penalties, including fines and imprisonment, depending on the severity of the breach. These penalties are intended to deter non-compliance and uphold the integrity of the tax agent profession.