Termination of tax agent registrations - April & May 2017

Overview

The Tax Agent Services Act 2009 (TASA) was enacted to address the need for a regulatory framework governing tax agents and tax (financial) planners in Australia. The Act was passed by the Australian Parliament with the aim of ensuring that tax practitioners meet certain professional standards and are fit and proper to provide tax services. The Act establishes the Tax Practitioners Board, which is responsible for regulating the conduct of tax agents and tax (financial) planners and ensuring compliance with the Act. The policy objective of the Act is to protect the public interest by ensuring that tax practitioners provide professional and ethical services and to promote confidence in the tax system. The Tax Practitioners Board has the authority to terminate the registration of tax agents under the TASA if certain conditions are met, such as if the tax agent has surrendered their registration or if they have ceased to be a fit and proper person to hold a tax agent's registration. The Gazette notice provides a list of tax agents whose registrations have been terminated, along with the effective date and reason for termination. The termination of registration means that the affected tax agents are no longer authorised to provide tax services and are prohibited from using the title "tax agent" or "tax (financial) planner".

Scope and Application

The Tax Agent Services Act 2009 (TASA), under which the termination of tax agent registrations is governed, applies to individual tax agents and tax agent entities across Australia, ensuring that only qualified professionals can provide tax services to the public. The Act regulates the registration, conduct, and practice of tax agents, with the aim of maintaining high professional standards and protecting the public from incompetent or unscrupulous practitioners. The Tax Practitioners Board, established under this Act, has the authority to terminate registrations based on various grounds, including voluntary surrender, cessation of business operations, or death of the registrant. The terminations listed in the gazette are effective from specified dates and the reasons range from voluntary surrender to the cessation of business or the death of the registrant. This Act operates on a national level, applying to all states and territories within Australia, and while it generally applies to all tax agents and entities, certain exclusions or exemptions may be provided under subordinate instruments or specific provisions within the Act.

Key Provisions

The Tax Agent Services Act 2009 (TASA) governs the regulation of tax agents in Australia. Under this Act, the Tax Practitioners Board has the authority to terminate the registration of tax agents who no longer meet the requirements to practice as a tax agent. The gazette C2017G00625 lists several instances where the Board has exercised this power. Specifically, section 40-15 of the Act allows the Board to terminate a registration if, among other things, the tax agent has surrendered their registration, ceased to exist, or due to death. For example, Nadia Khodr and several other tax agents listed in the gazette have had their registrations terminated by surrender on 11/04/2017. The Act imposes several obligations on tax agents, including maintaining professional indemnity insurance, adhering to the Tax Agent Code of Conduct, and completing continuing professional development. The Board monitors compliance with these obligations, and failure to meet these requirements can lead to termination of registration. For instance, the surrender of registration by tax agents such as Bruce Archibald Macdonald and Bettina Fairbairn suggests they may have failed to meet one or more of these ongoing obligations. Failure to comply with the requirements of the Tax Agent Services Act 2009 can result in civil and criminal penalties. For example, providing false or misleading information to the Board is an offence under section 135-5 of the Act, which can lead to fines of up to $22,200 for individuals and $111,000 for bodies corporate, as stipulated in section 135-10. Similarly, the Act provides for the imposition of pecuniary penalties for breaches of the Tax Agent Code of Conduct, with maximum fines of up to $22,200 for individuals and $111,000 for bodies corporate. The termination of registrations due to surrender or other reasons indicates a serious breach of the Act’s provisions, leading to the loss of the right to practice as a tax agent in Australia.