Termination of tax agent registrations - May 2019

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Australian Parliament to address the need for regulation and oversight of tax agents, ensuring that they meet certain professional standards and comply with ethical requirements. The Act established the Tax Practitioners Board, which is responsible for regulating tax practitioners and ensuring they adhere to professional standards and codes of conduct. The primary policy objective of the Act is to protect the public interest by ensuring that tax agents are competent, trustworthy, and act in the best interests of their clients. The Act provides the Board with the authority to terminate the registration of tax agents who fail to meet these standards, which was demonstrated in the gazette by the termination of registrations for reasons such as surrender or failure to comply with the code of professional conduct.

Scope and Application

The Tax Agent Services Act 2009 (TASA) applies to all tax practitioners who provide tax services to the public. This includes tax agents, BAS agents, and tax (financial) advisers. The act is a Commonwealth legislation that regulates the conduct of tax practitioners in Australia. It sets out the standards of professional conduct and competence expected from tax practitioners, and provides for the registration, discipline, and education of tax practitioners. The act applies to all tax practitioners, regardless of their location in Australia, and is administered by the Tax Practitioners Board. The act includes provisions for exemptions and exclusions, such as for certain small businesses and for certain types of tax services. The act also provides for the making of subordinate instruments to extend or restrict its application.

Key Provisions

The primary sections of the Tax Agent Services Act 2009 (TASA) relevant to the termination of tax agent registration are found in subdivisions 40-A and 30-B. Under subdivision 40-A, the Tax Practitioners Board (TPB) can terminate a tax agent's registration if the agent ceases to meet one of the tax practitioner registration requirements or if the agent surrenders their registration. Section 40-55 allows the TPB to terminate the registration of a tax agent if they cease to meet one of the registration requirements, while Section 40-60 permits the termination of registration if the agent voluntarily surrenders their registration. Similarly, under subdivision 30-B, the TPB can terminate a tax agent's registration for failure to comply with the code of professional conduct. This is governed by Section 30-45, which authorises the TPB to terminate registration if the agent fails to comply with the code of professional conduct. The TPB imposes specific obligations on registered tax agents, including adherence to the code of professional conduct, meeting all registration requirements, and maintaining the integrity of their practice. Failure to comply with these obligations can lead to the termination of their registration. Agents are expected to act with honesty and integrity, provide professional services competently, and maintain client confidentiality. The TPB also requires tax agents to notify the board of any changes in their circumstances that might affect their eligibility to hold a registration. Breaches of the obligations outlined in the TASA can result in significant consequences. For instance, ceasing to meet one of the tax practitioner registration requirements, such as the financial or education requirements, can lead to the termination of registration under Section 40-55. Failure to comply with the code of professional conduct can result in the termination of registration under Section 30-45. The maximum penalties for serious breaches, such as fraudulent activities, can include fines and imprisonment. Specifically, under Section 151 of the Criminal Code Act 1995 (Cth), an individual can be fined up to $210,000 and/or imprisoned for up to 10 years for serious criminal offences. These stringent penalties underscore the importance of compliance with the Act's provisions.