Termination of tax agent registrations - July 2019

Overview

The Tax Agent Services Act 2009 (TASA) was enacted to regulate the conduct of tax agents in Australia and ensure compliance with professional standards. The Act was introduced to address the need for a regulatory framework governing tax agents to protect consumers and maintain the integrity of the tax system. The Act was passed by the Parliament of Australia and aims to provide for the regulation of tax practitioners, ensuring that they meet certain professional standards and are fit and proper persons to hold a tax agent registration. The Tax Practitioners Board, established under the Act, is responsible for the registration and regulation of tax agents, and it has the power to terminate registrations if necessary. The policy objective of the Act is to provide for the registration and regulation of tax practitioners, ensuring that they meet certain professional standards and are fit and proper persons to hold a tax agent registration. The Act also aims to protect consumers by ensuring that tax agents are competent and act in the best interests of their clients.

Scope and Application

The Tax Practitioners Board (TPB) has terminated the registration of several tax agents under the Tax Agent Services Act 2009 (TASA), as gazetted on 9 July 2019. The termination of registration applies to a range of entities, including corporations, partnerships, and individual practitioners, as listed in the gazette, and is effective from the specified dates. The reasons for termination vary, with some agents surrendering their registration voluntarily, while others have been terminated due to failure to comply with the code of professional conduct, or because the individual tax agent has deceased. The TPB has the authority to terminate registrations under subdivisions 40-A and 30-B of TASA, which pertain to the registration and conduct of tax agents, respectively. The Act applies on a Commonwealth level, impacting registered tax agents across Australia. The Act does not specify exclusions or thresholds within the gazetted information, but the application of the Act can be extended or restricted through subordinate instruments, such as regulations or codes of conduct, which are not detailed in the gazette.

Key Provisions

The Gazette C2020G00807 provides information about the termination of tax agent registrations under the Tax Agent Services Act 2009 (TASA). Specifically, it lists the tax agents whose registrations were terminated under subdivisions 40-A and 30-B of the Act. Under subdivision 40-A, the Tax Practitioners Board terminated the registrations of numerous tax agents by surrender, effective from 9 July 2019, except for Wayne Thomas Fraser, whose termination took effect on 31 July 2019, and Arthur John Forrest, whose registration was terminated due to the agent’s death. Under subdivision 30-B, the Board terminated the registrations of several tax agents effective from dates between 5 and 29 July 2019 due to a failure to comply with the code of professional conduct. The obligations imposed by the Act on tax agents include adherence to the code of professional conduct and the maintenance of certain standards of competence and integrity. The Act requires tax agents to surrender their registrations if they no longer meet the necessary requirements, or if they voluntarily choose to do so. Furthermore, the Act mandates that the Tax Practitioners Board must terminate the registration of any tax agent who fails to comply with the professional conduct provisions. Breaches of the Act can result in serious consequences. Under section 30-30 of the TASA, a tax agent who fails to comply with the code of professional conduct can have their registration terminated. The Gazette highlights instances where this has occurred, indicating the severity of such breaches. Additionally, the Act may impose penalties for non-compliance, although the specific penalties are not detailed in the Gazette. It is likely, however, that penalties could include fines or other sanctions as determined by the Board or a court, depending on the nature and severity of the breach.