Termination of tax agent registrations - January 2020

Overview

The Tax Agent Services Act 2009 (TASA), enacted by the Australian Parliament, seeks to regulate tax agents and ensure that they adhere to a high standard of professional conduct. The Act was introduced to address the need for a regulatory framework that would protect the public interest by ensuring that tax agents are competent, trustworthy, and act in accordance with professional standards. The primary policy objective of the Act is to enhance the quality of services provided by tax agents and to maintain public confidence in the tax system. The Tax Practitioners Board, established under the Act, is responsible for the administration and enforcement of the Act's provisions, including the suspension and termination of tax agent registrations where necessary. The gazette provided lists tax agents whose registrations have been terminated or suspended, detailing the reasons and effective dates for each case.

Scope and Application

The Tax Practitioners Board has terminated the registration of various tax agents under subdivisions 40-A and 30-B of the Tax Agent Services Act 2009 (TASA), applying to entities and individuals providing tax agent services across Australia. The terminations are effective from specific dates, with reasons ranging from the agents surrendering their registrations to companies no longer meeting registration requirements, individuals convicted of fraud or dishonesty offences, or individuals who have passed away. The suspensions also arise from failure to comply with the Code of Professional Conduct. The Act's application extends nationally, with the Tax Practitioners Board having the authority to enforce these actions. Exclusions or exemptions are not specified within the provided text, but the Act may include such provisions in its full text or through subordinate instruments.

Key Provisions

The gazetted notice from the Tax Practitioners Board (TPB) under the Tax Agent Services Act 2009 (TASA) outlines the termination of tax agent registrations (subdivision 40-A) and suspensions (subdivision 30-B). Section 40-35 of the Act allows the TPB to terminate a tax agent's registration if the agent no longer meets the registration requirements or has surrendered their registration. This includes cases where the entity has ceased to exist or where an individual agent has passed away. Section 30-30 of the Act enables the TPB to suspend a tax agent's registration if there has been a failure to comply with the code of professional conduct. The Act imposes specific obligations on registered tax agents, including adherence to professional standards and continuous compliance with registration requirements. For entities, this means maintaining the necessary qualifications and business structures to continue operating as a tax agent. Individuals must also ensure they meet the ongoing eligibility criteria, such as avoiding convictions for fraud or dishonesty. Furthermore, tax agents must comply with the code of professional conduct as outlined in section 30-25 of the Act, which includes standards for professional behaviour, integrity, and competence. Breaches of the Act can lead to significant penalties. Under section 40-40, the TPB can terminate a tax agent’s registration, which prohibits the agent from providing tax agent services. For those who continue to act as a tax agent without proper registration, section 40-70 imposes civil penalties. Additionally, under section 30-40, suspension of registration can occur for non-compliance with the code of professional conduct, which can severely impact an agent's professional reputation and ability to operate. The Act does not specify maximum penalties for these actions, but they are significant enough to deter non-compliance.