Termination of tax agent registrations - December 2019

Overview

The Tax Agent Services Act 2009 (TASA) was enacted to establish a regulatory framework for tax agents in Australia, aiming to protect the public by ensuring that tax agents are suitably qualified and competent, and comply with professional standards. The Act is administered by the Tax Practitioners Board, an independent statutory authority established under the Act, whose role includes registering tax agents and regulating their conduct. The policy objective of the Act is to ensure that tax agents provide services with integrity, competence, and diligence, thereby maintaining public confidence in the tax system. Recently, the Tax Practitioners Board has terminated, suspended, or otherwise ceased the registration of numerous tax agents, primarily due to reasons such as surrender of registration, failure to meet registration requirements, or failure to comply with the code of professional conduct, reflecting the Board's commitment to upholding the standards set by the Act.

Scope and Application

The Tax Agent Services Act 2009 (TASA) applies to tax agents and tax (financial) advisers who are registered to provide tax services to the public in Australia. The Act, which is a Commonwealth statute, regulates the conduct and professional standards of tax agents to ensure that they act in the best interests of their clients and comply with the law. The Act applies to both individuals and entities that provide tax services, and it encompasses a broad range of activities including the preparation of tax returns, advising on tax law, and representing clients in dealings with the Australian Taxation Office. The geographic reach of the Act is national, applying across all states and territories in Australia. The Act also extends its application through subordinate instruments, which can include regulations and codes of conduct that provide further detail on the standards and practices expected of registered tax agents. The Act includes certain exclusions and exemptions, such as for tax agents who are not providing services to the public or who are not charging for their services. However, the primary focus of the Act is on ensuring that tax agents meet the necessary standards of competence and integrity to provide reliable and trustworthy tax services.

Key Provisions

The Gazetted notice from the Tax Practitioners Board (TPB) under the Tax Agent Services Act 2009 (TASA) details the termination and suspension of registrations for various tax agents. Section 40-A and 30-B of the TASA provide the framework for these actions. Under section 40-A, the TPB has terminated the registrations of numerous tax agents, often due to voluntary surrenders or because the entities or individuals no longer meet the registration requirements. Notable among these terminations are those of Alan Bruce Hall, Alan Hill, and many others listed, all effective from dates in December 2019. Section 30-B of the TASA outlines the conditions under which the TPB can suspend or terminate registrations, including failure to comply with the code of professional conduct. For instance, the registrations of Peter Douglas Baker and Tim Huat Khor were terminated due to such non-compliance, effective from early December 2019. Additionally, the TPB has suspended the registrations of Elton John Rasmussen and Michael Van Manen, both for failure to comply with the Code of Professional Conduct, effective from late December 2019 and early December 2019, respectively. The obligations imposed by the TASA on registered tax agents are stringent, requiring them to adhere to professional standards, maintain adequate professional indemnity insurance, and comply with the TPB's code of conduct. Agents must also keep proper records and report any changes in their circumstances to the TPB promptly. Failure to meet these obligations can lead to disciplinary action, including the suspension or termination of their registration. Furthermore, the TASA mandates that tax agents act with integrity, competence, and diligence when providing tax services, ensuring that they do not engage in conduct that would bring discredit to the profession. Breaching the provisions of the TASA can result in severe consequences. Under section 151 of the Act, the TPB can impose penalties for non-compliance, which may include fines up to $12,600 for individuals and $63,000 for bodies corporate, as well as potential imprisonment. For serious breaches, the TPB can terminate a tax agent's registration, which not only disqualifies the agent from practising but also subjects them to civil and criminal liabilities. Suspension of registration, as seen with Elton John Rasmussen and Michael Van Manen, is another form of disciplinary action that can be imposed, preventing the agent from practising until the issues leading to the suspension are resolved. These measures are designed to uphold the integrity and professionalism of the tax agent industry in Australia.