Termination of tax agent registrations - January 2017

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Parliament of Australia to establish a regulatory framework governing tax practitioners. The Act was introduced to address the need for a professional standard and ethical conduct among tax agents, ensuring the integrity and reliability of tax services provided to the public. The overarching policy objective is to protect the public interest by ensuring that tax practitioners meet certain professional standards and obligations. The Tax Practitioners Board, established under the Act, is responsible for administering the registration and ongoing regulation of tax agents and BAS agents, including the power to terminate registrations where necessary. The Gazette C2017G00190 informs the public of the termination of tax agent registrations under the Act. The terminations listed were primarily due to agents surrendering their registrations or ceasing to exist. In one case, a termination was due to a failure to comply with the code of professional conduct, highlighting the Board's commitment to enforcing professional standards. The Gazette serves as a formal announcement of these administrative actions, ensuring transparency and accountability in the regulation of tax agents.

Scope and Application

The Tax Agent Services Act 2009 (TASA) applies to all individuals and entities providing tax agent services within Australia, including sole practitioners, partnerships, and companies. This Act governs the conduct, qualifications, and professional obligations of tax agents to ensure the integrity and reliability of tax advice and services provided to clients. The legislation has a national reach, impacting tax agents across all states and territories. The Act’s jurisdiction is primarily under the Commonwealth, with the Tax Practitioners Board responsible for its enforcement. The Act allows for exclusions and exemptions in certain circumstances, such as when a tax agent voluntarily surrenders their registration, or when a registered entity ceases to exist, as evidenced by the listed terminations. The application of the Act may be extended or restricted through subordinate instruments, which allow for further regulations and guidelines to be established by the Board. These regulations can address specific issues such as the professional conduct of tax agents or the maintenance of their qualifications, ensuring a consistent and high standard of service across the industry.

Key Provisions

The Tax Agent Services Act 2009 (TASA) outlines the framework for the regulation of tax agents and tax (financial) planners in Australia. Under this Act, the Tax Practitioners Board (TPB) is responsible for maintaining a register of tax agents, which includes individuals and entities authorised to provide tax agent services. The Act provides for the registration, ongoing monitoring, and termination of tax agent registrations, ensuring that tax practitioners meet certain standards of professional conduct and competence. Section 40-10 (subsections 40-15 and 40-20) of the TASA allows the TPB to terminate the registration of a tax agent if the agent surrenders their registration, ceases to exist, or fails to comply with the code of professional conduct, among other reasons. Section 30-B (subsections 30-35 and 30-40) specifies the process and grounds for the termination of a tax agent’s registration if there is a failure to comply with the professional standards. The termination of registration under these sections is effective from the specified date and the reason for termination is clearly stated, such as surrender, cessation of business, or non-compliance with the professional standards. The obligations imposed on tax agents by the TASA include adherence to a code of professional conduct, continuous professional development, and maintaining adequate professional indemnity insurance. Agents are required to report any changes in their business or personal circumstances that may affect their registration status to the TPB. The Act also mandates that tax agents must not engage in misleading or deceptive conduct, must act with integrity, and must not engage in conduct that would bring the tax profession into disrepute. Failure to comply with the requirements of the TASA can result in civil or criminal penalties. For example, Section 157 (subsections 157A and 157B) outlines that an individual can be subject to a civil penalty of up to $11,100 for certain breaches, while subsection 157C provides for criminal penalties where the offence is intentional or reckless, with maximum fines of up to $222,200 for individuals and $1,111,100 for bodies corporate. The TPB has the authority to refer matters to the Australian Taxation Office or other relevant authorities for further investigation or prosecution. Additionally, the TPB can impose administrative penalties for failure to comply with reporting requirements or other administrative obligations under the Act.