Termination of tax agent registrations - January 2018

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Australian Parliament to establish a regulatory framework for tax agents, ensuring that they meet professional standards and ethical requirements. This legislation was introduced to address the need for greater oversight and regulation within the tax profession to protect consumers and maintain the integrity of the tax system. The Tax Practitioners Board, established under this Act, is responsible for the registration, regulation, and disciplinary action of tax agents. The policy objective of the Act is to ensure that tax agents are competent, ethical, and provide reliable services to the public, thereby fostering trust and confidence in the tax system. The Act provides mechanisms for the registration of tax agents, sets out the professional standards they must adhere to, and includes provisions for the disciplinary action against agents who fail to comply with these standards.

Scope and Application

The Tax Agent Services Act 2009 (TASA) applies to tax agents, tax (financial) planners, and BAS agents who are registered under the Act. These include individuals, partnerships, and companies that provide tax services to the public in Australia. The Act’s provisions apply across the Commonwealth of Australia and encompass any conduct or transactions related to tax services that fall within the scope of registered tax agents. The Act allows for certain exclusions and exemptions, particularly in relation to specific financial thresholds and categories of tax services, but these are narrowly defined and subject to specific conditions. The Act’s application can be extended or modified through subordinate instruments such as regulations and codes of professional conduct, which provide further detail on compliance and practice standards for registered tax agents.

Key Provisions

The Tax Agent Services Act 2009 (TASA) outlines the procedures and criteria for the registration and regulation of tax agents in Australia. The Act has various sections which govern the registration process, the obligations of registered tax agents, and the consequences of non-compliance. Under subdivision 40-A of the Act (section 143), the Tax Practitioners Board (TPB) has the authority to terminate the registration of tax agents. This can occur either by the agent's surrender of their registration (section 144) or due to certain specified reasons such as failure to comply with the code of professional conduct (section 145), or if the agent no longer meets the requirements to be a tax practitioner (section 146). In the Gazette, it is noted that several tax agents have had their registrations terminated, either through surrender or due to failure to comply with the code of professional conduct. The Act imposes several obligations on registered tax agents, including maintaining professional indemnity insurance, completing continuing professional development, and adhering to a code of professional conduct. These obligations are detailed in various sections of the Act, including section 148 which mandates that tax agents must hold professional indemnity insurance, and section 150 which requires tax agents to undertake continuing professional development activities. Furthermore, section 156 stipulates the code of professional conduct that tax agents must adhere to, which includes requirements such as acting with integrity, competence, and diligence, and avoiding conflicts of interest. Failure to comply with the obligations and requirements of the Act can result in various consequences. Under section 145 of the Act, the TPB can terminate a tax agent's registration if they fail to comply with the code of professional conduct. Additionally, under section 166, the TPB can impose penalties on tax agents who engage in conduct that is unprofessional or dishonourable. The penalties for such offences can include fines of up to $21,000 for individuals and $105,000 for bodies corporate, as stipulated in section 167. Furthermore, under section 170, a tax agent who has had their registration terminated can be prohibited from reapplying for registration for a specified period.