Termination of tax agent registrations - February & March 2018

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Australian Parliament to regulate the conduct of tax agents and to ensure the integrity of the tax system by maintaining high professional standards. This legislation was introduced to address the need for a regulatory framework governing tax agents, to protect consumers, and to uphold the reputation of the tax profession. The Act provides a statutory basis for the establishment of the Tax Practitioners Board, which is responsible for the registration and oversight of tax agents. The policy objective underpinning the TASA is to ensure that tax agents provide services with competence, diligence, and integrity, thereby fostering public confidence in the tax system. The Act enables the Board to take appropriate action against tax agents who fail to comply with the professional standards and requirements set out in the legislation. The gazette C2018G00392, issued by the Tax Practitioners Board under the authority of the TASA, lists the termination of registrations of various tax agents. These terminations occur under subdivisions 40-A and 30-B of the Act, primarily due to the surrender of registration or failure to meet the tax practitioner requirements or comply with the code of professional conduct. The gazette serves as an official notification to the public regarding the cessation of these tax agents' registrations, ensuring transparency and accountability within the tax profession. This action by the Board reflects its commitment to maintaining high standards and protecting the interests of taxpayers.

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 lodgement of taxation returns, the provision of tax advice, and other related activities. The Act has a national reach, applying across the Commonwealth of Australia, and its provisions are enforced by the Tax Practitioners Board, which is responsible for the registration and regulation of tax agents. The Act's application can be extended or restricted through subordinate instruments, such as regulations and codes of conduct, which provide further detail on specific requirements and standards expected of tax agents. The Act also specifies certain exclusions and exemptions, such as the exclusion of certain Commonwealth entities and transactions. The termination of a tax agent's registration under the Act can occur for reasons such as surrender of registration or failure to comply with the requirements of the Act or the code of professional conduct, as evidenced by the Gazetted list of terminated registrations.

Key Provisions

The Tax Agent Services Act 2009 (TASA) outlines the requirements for the registration of tax agents and the conditions under which their registration may be terminated. Under section 40-110 (subsections 40-A and 30-B), the Tax Practitioners Board is responsible for terminating tax agent registrations either by surrender or due to failure to comply with the Act's requirements. The notice provided by the Board specifies the tax agents whose registrations have been terminated, the effective date of the termination, and the reason for the termination. For example, the notice indicates that Adrian Scarpinato's registration was terminated by surrender on 28 February 2018, while Kimbila Holdings Pty Ltd's registration was terminated due to the company ceasing to meet one of the tax practitioner requirements on 15 February 2018. The obligations imposed on tax agents by the Act include adhering to professional conduct standards and meeting specific criteria for registration. Failure to comply with these obligations can result in the termination of their registration. Under the Act, the consequences of termination can include both civil and criminal penalties. For instance, section 40-110(2) of the Act stipulates that a tax agent whose registration has been terminated may be subject to disciplinary action, including fines and suspension or revocation of their registration. Additionally, section 30-150 imposes penalties for non-compliance with the Act, which can include fines up to $21,000 for individuals and $105,000 for bodies corporate, as stipulated in section 30-165. These provisions ensure that tax agents are held accountable for their professional conduct and compliance with the Act's requirements.