Termination of tax agent registrations - December 2017

Overview

The Tax Agent Services Act 2009 (TASA) was enacted to address the need for a regulatory framework governing the conduct and qualifications of tax agents in Australia. The Act aims to ensure that tax agents provide services with integrity, competence, and diligence, thereby protecting the interests of taxpayers. Enacted by the Parliament of Australia, the policy objective of TASA is to maintain public confidence in the tax system by regulating tax agents and promoting professional standards. The Act empowers the Tax Practitioners Board to oversee the registration and conduct of tax agents, including the authority to terminate registrations where necessary to protect the public interest. The termination of tax agent registrations listed in the gazette is an example of the Board exercising its powers under this Act to maintain the integrity of the profession.

Scope and Application

The Tax Agent Services Act 2009 (TASA) applies to tax agents and tax (financial) advisers, regulating their conduct and professional obligations within Australia. The Act pertains to any individual or entity engaged in the provision of tax agent services or tax (financial) advisory services, ensuring that such services are provided with integrity and competence. The Act's reach is national, applying across all states and territories of Australia, thereby ensuring uniform standards and regulations for tax agents and tax (financial) advisers. The Act includes provisions for termination of registration, which may occur due to reasons such as death, surrender of registration, or failure to meet professional requirements. This termination affects all registered tax agents and tax (financial) advisers across the country. The Act may also extend or restrict its application through subordinate instruments, such as regulations and codes of conduct, which provide further detail on the professional standards and conduct expected of tax agents and tax (financial) advisers.

Key Provisions

The Tax Agent Services Act 2009 (TASA) outlines various provisions for the regulation and oversight of tax agents in Australia. Section 40-40 (subsections 40-A and 30-B) of the Act provides the legal framework for the termination of tax agent registrations. The recent Gazette, C2018G00148, lists the termination of registrations for multiple tax agents and entities. These terminations occurred either because the tax agents or entities ceased to meet the requirements of the Act or because they voluntarily surrendered their registrations. For instance, Section 40-40(40-A) of the Act specifies that a registration can be terminated if the tax agent is deceased, while Section 40-40(30-B) applies when an individual or entity no longer meets the necessary tax practitioner requirements. This includes situations where there is a failure to comply with the standards set out in the Act. Under the TASA, tax agents are subject to various obligations and requirements to maintain their registration. These include meeting professional standards, completing continuing professional development, and ensuring compliance with the Tax Agent Code of Conduct. Failure to meet these standards can result in disciplinary action, including the potential termination of their registration. For example, an individual tax agent must comply with ongoing education requirements to ensure they are up-to-date with tax laws and practices. Entities, such as companies or partnerships providing tax services, must also ensure that their representatives comply with these standards. Non-compliance with these obligations can lead to the Board taking action to terminate the registration, as seen in the Gazette. Breach of the provisions set out in the Tax Agent Services Act 2009 can result in significant consequences for those affected. The Act includes provisions for both civil and criminal penalties. For instance, under Section 132, a person who acts as a tax agent without being registered can be subject to a civil penalty of up to $13,200 for each offence. In more severe cases, where there is intentional or reckless misconduct, criminal penalties can apply, including fines of up to $132,000 and imprisonment for up to five years. These penalties underscore the importance of compliance with the Act and the serious consequences that can result from failure to meet the required standards.