Termination of Tax agent registrations - December 2018

Overview

The Tax Agent Services Act 2009 (TASA) was enacted to ensure that tax agents in Australia adhere to high professional standards, thereby maintaining the integrity of the tax system. The Act was introduced by the Australian Parliament to address the need for regulating the conduct of tax agents and to protect the public from unscrupulous practices. The policy objective of TASA is to ensure that tax agents provide professional services competently and ethically. Recently, the Tax Practitioners Board, acting under the authority granted by the Act, terminated the registrations of several tax agents, primarily due to reasons such as surrender of registration, cessation of business, failure to meet registration requirements, or the death of the registrant. This action underscores the Board's commitment to upholding the standards set by the Act and ensuring that only qualified and compliant tax agents are permitted to operate.

Scope and Application

The Tax Agent Services Act 2009 (TASA) applies to tax agents, which includes both individuals and entities engaged in the provision of tax agent services within Australia. The Act regulates the conduct and registration of tax agents to ensure compliance with professional standards and to protect consumers. It operates within the Commonwealth jurisdiction, meaning it applies across Australia. The Act does not explicitly outline exclusions or exemptions but provides for specific grounds for termination of registration, such as surrender of registration, cessation of business, failure to meet registration requirements, or failure to comply with the code of professional conduct. The Tax Practitioners Board, established under the Act, has the authority to terminate registrations based on these grounds. The Act may also extend its application through subordinate instruments, which can provide additional details on the enforcement of the Act and the procedures for registration and termination.

Key Provisions

The Tax Agent Services Act 2009 (TASA) governs the registration and professional conduct of tax agents in Australia. Section 40-15 (subdivision 40-A) provides that the Tax Practitioners Board has the authority to terminate the registration of tax agents under specific circumstances, such as when the agent has died, has surrendered their registration, has ceased to exist as a legal entity, or has failed to meet one of the registration requirements. These terminations are effective from the dates specified in the gazette and the reasons for each termination are detailed. For example, Alan Ernest Dredge’s registration was terminated due to his death, while QTR Accountants Pty. Ltd.'s registration was terminated for failure to comply with the code of professional conduct under section 30-70 (subdivision 30-B). The Act imposes obligations on tax agents to maintain their registration and adhere to the code of professional conduct. For example, agents must ensure they meet the ongoing requirements for registration, which includes maintaining professional indemnity insurance and completing continuing professional development. Failure to comply with these requirements can lead to the termination of their registration. Furthermore, agents must act with integrity and competence in their dealings with clients and the Australian Taxation Office (ATO). Any breach of the code of conduct, such as unethical conduct or professional misconduct, can result in disciplinary action, including termination of registration. Breaches of the Act or the code of professional conduct can result in severe consequences for the tax agents involved. Section 130 of the Act provides for civil penalties for non-compliance with the registration requirements, including fines up to $11,100 for individuals and $55,500 for bodies corporate. Additionally, section 132 outlines criminal penalties for serious breaches, such as engaging in dishonest conduct or providing false or misleading information, which can result in fines up to $222,000 for individuals and $1,110,000 for bodies corporate, and/or imprisonment for up to five years. These penalties underscore the importance of compliance with the Act and the professional standards expected of tax agents. In summary, the Tax Agent Services Act 2009 sets out clear provisions for the registration and conduct of tax agents in Australia. Under subdivisions 40-A and 30-B, the Tax Practitioners Board can terminate registrations for various reasons, including death, surrender, cessation of existence, and failure to comply with registration requirements or the code of professional conduct. The Act imposes significant obligations on tax agents to maintain their registration and adhere to professional standards. Failure to comply can result in termination of registration and severe civil or criminal penalties. These provisions and consequences are designed to protect the integrity of the tax system and ensure that tax agents operate with the necessary competence and integrity.