Termination of tax agent registrations - August 2017

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Parliament of Australia to address the need for regulation and oversight of tax agents to ensure compliance with professional standards and protect the public interest. The Act was introduced to create a regulatory framework for tax agents, establishing the Tax Practitioners Board to manage their registration and professional conduct. The policy objective behind the Act is to enhance the integrity and reliability of the tax profession by ensuring that tax agents meet certain professional and ethical standards. The Gazette, C2017G01038, notifies the public of the termination of tax agent registrations under this Act, highlighting instances where agents have either surrendered their registration or failed to meet the required standards, thereby ensuring transparency and accountability within the tax profession.

Scope and Application

The Tax Agent Services Act 2009 (TASA) governs the registration and conduct of tax agents in Australia, applying to both individuals and entities offering tax services. The Act applies nationwide across Australia, covering all jurisdictions uniformly, with the Tax Practitioners Board administering its provisions. The Act delineates specific criteria for tax agent registration, including qualifications, professional indemnity insurance, and adherence to a code of professional conduct. Exclusions from registration include certain tax practitioners such as in-house tax agents and those providing services solely for their employing entity, as outlined in subordinate instruments. The Act also provides mechanisms for the termination of registrations, whether due to surrender, failure to comply with the code of professional conduct, or cessation of meeting the requisite qualifications, as evidenced by the Gazette, which lists agents whose registrations have been terminated along with the reasons for such actions.

Key Provisions

The Tax Agent Services Act 2009 (TASA) is a legislative instrument that governs the professional conduct and registration of tax agents in Australia. The main operative sections relevant to the termination of tax agent registrations under this Act include sections 40-30 and 30-10 (subsections 40-30(1) and 30-10(1)). These sections empower the Tax Practitioners Board (TPB) to terminate the registration of tax agents who have either surrendered their registration, ceased to meet the requisite qualifications or professional standards, or failed to comply with the code of professional conduct. Under section 40-30(1), the TPB has the authority to terminate a tax agent’s registration if the agent has surrendered their registration. This means that the agent has voluntarily opted to cease their registration. Similarly, section 30-10(1) allows the TPB to terminate a tax agent's registration if the agent has ceased to meet one of the specified tax practitioner requirements, such as educational qualifications, professional experience, or good character. Additionally, under the same section, the TPB can terminate a tax agent's registration if the agent has failed to comply with the code of professional conduct. The Act imposes several obligations on tax agents to maintain their registration. These include adhering to the code of professional conduct, meeting all specified qualifications and requirements, and notifying the TPB of any changes in personal or professional circumstances that might affect their eligibility to hold a registration. For example, if a tax agent no longer meets the educational or professional requirements, they must notify the TPB, or risk facing termination of their registration. Failure to comply with the requirements of the Act can result in serious consequences. Under section 40-35, any tax agent whose registration is terminated is prohibited from acting as a tax agent until their registration is reinstated. Furthermore, under section 146, the Act provides for various offences and penalties for breaches of the code of professional conduct, including fines of up to $10,500 for individuals and $52,500 for bodies corporate, as well as potential criminal penalties. These measures are designed to ensure that tax agents maintain high professional standards and comply with the regulatory requirements set forth by the TPB.