Termination of tax agent registrations - June 2020

Overview

The Tax Agent Services Act 2009 (TASA) was enacted to regulate the conduct of tax agents in Australia and to protect the public from improper conduct by tax agents. It establishes the Tax Practitioners Board, which is responsible for regulating the profession. The Act was introduced to address issues related to the professional conduct of tax agents and to ensure that they comply with certain standards. The Parliament of Australia enacted this legislation to safeguard taxpayers by ensuring that tax agents are appropriately qualified, competent, and adhere to professional standards. The policy objective of the Act is to maintain public confidence in the tax system by regulating the conduct of tax agents and ensuring that they provide services with integrity and competence.

Scope and Application

The Tax Agent Services Act 2009 (TASA) applies to tax agents who are registered to provide tax agent services in Australia. This includes individuals, entities, and companies that provide services related to the preparation and lodgment of tax returns, tax advice, and other related activities. The Act operates at the Commonwealth level, ensuring a unified regulatory approach across Australia. The Tax Practitioners Board, established under this Act, has the authority to register, suspend, or terminate the registration of tax agents, either voluntarily by the agent or as a result of non-compliance or failure to meet registration requirements. The Act allows for exclusions and exemptions, such as certain low-risk activities, but these are defined through subordinate instruments that extend or restrict the application of the Act. The Gazette issued by the Board lists specific instances where registrations have been terminated or suspended, detailing the reasons and effective dates for each case, thereby providing transparency and accountability in the regulation of tax agents.

Key Provisions

The Tax Agent Services Act 2009 (TASA) governs the registration, conduct and professional obligations of tax agents in Australia. One of the key provisions of the Act is the process for terminating the registration of a tax agent. This is addressed in sections 40-45 (subsections 40-A and 30-B) of the Act. The Act allows the Tax Practitioners Board to terminate the registration of a tax agent under these subsections for reasons such as surrender of the registration by the tax agent, the agent no longer meeting the registration requirements, or failure to comply with the code of professional conduct. The termination becomes effective on the date specified in the gazette, which in this case is 9/06/2020 for most agents, with a few exceptions. The obligations and requirements imposed by the Act on registered tax agents include adherence to a code of professional conduct, meeting the requisite qualifications and experience, and maintaining appropriate professional indemnity insurance. Tax agents are required to comply with these obligations as a condition of their registration. Any failure to meet these requirements, such as not complying with the code of professional conduct or not meeting the registration requirements, can lead to the termination or suspension of their registration. This is evident in the gazette where several tax agents' registrations were terminated or suspended due to such failures. Breaching the provisions of the Tax Agent Services Act 2009 can lead to serious consequences. Under sections 118 and 119 of the Act, offences can attract significant penalties. For instance, knowingly or recklessly contravening the Act can result in a civil penalty of up to $22,200 for an individual and $111,000 for a body corporate. Additionally, in more serious cases, criminal penalties may apply, which can include substantial fines and even imprisonment. It is therefore imperative for tax agents to fully understand and comply with the Act to avoid these severe consequences.