Termination of tax agent registrations - February 2017

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Australian Parliament to regulate the conduct of tax agents and tax (financial) planners, ensuring that they adhere to professional standards and comply with the law. This legislation was introduced to address the need for a robust regulatory framework governing the tax agent industry, aiming to protect the public interest and maintain the integrity of the tax system. The Act establishes the Tax Practitioners Board (TPB), which is responsible for the registration, education, and disciplinary oversight of tax agents. The policy objective underpinning the TASA is to ensure that tax practitioners provide services competently, ethically, and in accordance with the law, thereby fostering trust and confidence in the tax system. The TPB has the authority to terminate the registration of tax agents under certain circumstances, as evidenced by the recent terminations listed in the Gazette. These terminations were either due to the agents surrendering their registrations voluntarily or failing to comply with the code of professional conduct. The termination of registrations is a key measure to uphold the standards set by the Act, ensuring that only those who meet the requisite professional standards are permitted to operate within the tax agent industry.

Scope and Application

The Tax Agent Services Act 2009 (TASA) applies to tax agents and tax (financial) advisers who provide tax services for remuneration. The Act regulates their registration, continuing professional education, and conduct. It covers individuals and entities that offer tax services within Australia, which includes the Commonwealth, states, and territories. The Act provides certain exemptions, such as for tax practitioners providing services solely for their employing entity or for non-profit organisations. The application and enforcement of the Act may be extended or restricted by subordinate instruments, such as regulations and codes of conduct, which can specify additional requirements or exclusions. The termination of tax agent registration as outlined in the gazette indicates the enforcement of the Act's provisions, particularly under subdivisions 40-A and 30-B, which relate to voluntary surrender of registration and failure to comply with the code of professional conduct, respectively. This demonstrates the Act's jurisdictional reach and the mechanisms in place for ensuring compliance among registered tax agents.

Key Provisions

The Tax Agent Services Act 2009 (TASA) contains provisions for the registration and regulation of tax agents. Under this Act, section 40-25 (subsection 40-25(1)) allows the Tax Practitioners Board to terminate the registration of a tax agent if certain conditions are met, such as surrender of the registration (section 40-25(2)). Similarly, section 30-30 (subsection 30-30(1)) empowers the Board to terminate registration due to failure to comply with the code of professional conduct (section 30-30(2)). The Act mandates that when the Board terminates a registration, it must publish the details of the termination in the Commonwealth Gazette, as evidenced by the entries for Danny Liu and others (section 40-25(4)) and Jack Gergi (section 30-30(4)). Tax agents and entities regulated by the Act are required to adhere to specific professional standards and conduct themselves in a manner consistent with the code of professional conduct. This includes maintaining proper records, acting with integrity, and providing services competently. Failure to comply with these standards can result in the termination of their registration, as demonstrated by the termination of Jack Gergi's registration due to a failure to comply with the code of professional conduct (section 30-30). The Act imposes significant consequences for breaches of its provisions. For instance, section 30-30(3) stipulates that the termination of registration can lead to civil and criminal penalties. Additionally, section 30-20 outlines penalties for breaches of the code of professional conduct, which can include fines and imprisonment. The maximum penalty for serious breaches under section 30-20(1) can extend to a fine of up to $21,000 for individuals and $105,000 for bodies corporate, alongside imprisonment for up to 2 years. These stringent penalties underscore the importance of compliance with the Act’s requirements.