Termination of tax agent registrations - February 2019

Overview

The Tax Agent Services Act 2009 (TASA) was enacted to provide a regulatory framework for tax agents in Australia, ensuring that they meet specific professional standards and are fit to practice. The Act was introduced to address the need for regulating tax agents to protect consumers and maintain the integrity of the tax system. The Parliament of Australia passed this legislation, with a policy objective to enhance consumer protection and confidence in the tax profession by establishing a regulatory regime for tax agents. The Act provides for the registration of tax agents, sets out their professional obligations, and includes mechanisms for the oversight and enforcement of these obligations. This includes the authority for the Tax Practitioners Board to terminate the registration of tax agents who fail to comply with the requirements of the Act or cease to meet the necessary standards.

Scope and Application

The Tax Agent Services Act 2009 (TASA) applies to individuals and entities that provide tax agent services in Australia. These services include the preparation and lodgment of tax returns, the provision of advice on taxation matters, and any other services that involve the giving of advice on taxation law. The Act applies across the Commonwealth of Australia, and its jurisdiction encompasses all tax agents and registered tax practitioners who provide services within the nation. The Act does not explicitly list exclusions, but it does provide for exemptions and thresholds through its various sections, particularly in relation to the registration requirements for tax agents. The Act allows for the extension and restriction of its application through subordinate instruments such as regulations and codes of conduct, which detail specific operational standards and compliance measures. The termination of registration under the Act can occur for reasons such as surrender of registration, cessation of meeting registration requirements, or failure to comply with the code of professional conduct, as evidenced by the recent terminations listed in the gazette.

Key Provisions

The Tax Agent Services Act 2009 (TASA) mandates that the Tax Practitioners Board (TPB) is responsible for the registration of tax agents, and it includes provisions for the termination of such registrations. Under section 40-75 (subsection 40-75(1)), the TPB can terminate a tax agent's registration if the agent surrenders their registration, as per sections 40-60 to 40-65. This was the case for the majority of the agents listed in the gazette, with their registrations terminated from 19/02/2019 and 11/02/2019 due to surrender. Section 30-115 allows for the termination of registration if a tax agent fails to comply with the code of professional conduct, as evidenced by the termination of registrations for Bruce Frederick Dossel, Hassan Dandachli, Michael Keith Findlay, and Philip Laurence Heading, all effective from dates between 08/02/2019 and 25/02/2019. The Act imposes various obligations on tax agents, including adherence to the code of professional conduct outlined in Part 4 of the Act. Agents must also maintain professional indemnity insurance, comply with continuing professional development requirements, and ensure their registration remains current. Failure to comply with these obligations can result in the termination of their registration. Additionally, agents are required to report any changes in their circumstances to the TPB promptly, such as changes in business structure or personal details. The Act also requires tax agents to act with integrity and competence in their professional dealings and to avoid any conflicts of interest. Failure to comply with the Act's requirements can lead to serious consequences. Under section 325 of the Act, an agent whose registration is terminated for failure to comply with the code of professional conduct may face penalties. Such penalties can include fines of up to $21,000 for individuals and $105,000 for bodies corporate, as stipulated under section 328. Furthermore, the TPB may refer matters to the Australian Taxation Office for further investigation, which could result in additional civil or criminal penalties. In extreme cases, individuals may face disqualification from managing corporations, as per section 206C of the Corporations Act 2001 (Cth). The severity of the penalties reflects the importance of compliance with professional standards in the tax industry.