Termination of tax agent registrations - March 2020

Overview

The Tax Agent Services Act 2009 (TASA) was enacted to regulate tax practitioners and ensure the provision of professional and ethical tax services to the public. The Act was introduced to address the need for a comprehensive regulatory framework governing the conduct and registration of tax agents in Australia. This legislation was enacted by the Parliament of Australia and its policy objective is to protect the public by ensuring tax agents meet certain professional standards and are subject to ongoing oversight. The Act provides the Tax Practitioners Board with the authority to terminate or suspend the registration of tax agents who fail to comply with the requirements of the Act, as evidenced by the recent terminations and suspensions of various tax agents detailed in the document.

Scope and Application

The Tax Agent Services Act 2009 (TASA) applies to all tax agents who provide tax agent services in Australia, which includes individuals and entities that prepare tax returns, provide tax advice, or represent clients in matters related to taxation. The act operates nationally, ensuring that tax agents across all states and territories meet specific standards of professional conduct and competence. The Tax Practitioners Board, established under this act, has the authority to terminate or suspend the registration of tax agents who fail to meet the prescribed criteria, such as ceasing to meet registration requirements, surrendering their registration, or failing to comply with the code of professional conduct. The act allows for the extension of its application through subordinate instruments, which can provide further detail on the specific circumstances under which registration can be terminated or suspended. There are no stated exclusions or thresholds within the act itself, but the decision to terminate or suspend a registration often involves assessing the individual or entity against specific criteria outlined in the act and its regulations.

Key Provisions

The main operative sections of the C2020G00802 Gazette pertain to the termination and suspension of tax agent registrations under the Tax Agent Services Act 2009 (TASA). These sections detail the actions taken by the Tax Practitioners Board against specific tax agents and entities, including terminations effective from certain dates and reasons such as surrender of registration, failure to comply with the Code of Professional Conduct, and cessation of existence or non-compliance with registration requirements (sections 30-B and 40-A of TASA). For example, the registration of Adele Melissa Powney was terminated on 10/03/2020 due to her surrender of the registration, while the registration of Florence Patrick Consulting Pty Ltd was terminated on 24/03/2020 for failure to comply with the code of professional conduct. The Tax Agent Services Act 2009 imposes several obligations and requirements on the entities it governs. Firstly, registered tax agents must adhere to a Code of Professional Conduct, ensuring ethical and professional standards in their practice. Failure to comply with this code can result in disciplinary actions, including suspension or termination of registration. Secondly, tax agents and entities must maintain their registration by meeting specific criteria such as professional indemnity insurance and ongoing education requirements. Non-compliance with these criteria can also lead to termination of registration. Furthermore, the Act requires that any changes in the status of a registered entity, such as the cessation of existence or changes in ownership, be promptly reported to the Tax Practitioners Board. The C2020G00802 Gazette also outlines the consequences and penalties for breaches of the Act. The primary civil consequences include the termination or suspension of a tax agent’s registration, which can significantly impact their ability to practice. For instance, the registration of Scott Matthew Davis was suspended on 12/03/2020 due to a failure to comply with the Code of Professional Conduct. Additionally, the Act does not explicitly state monetary penalties for breaches, but the consequences of losing one’s registration can be substantial, affecting the agent's livelihood and reputation. It is important for tax agents to be aware of these potential repercussions and to comply strictly with the Act's requirements to avoid such outcomes.