Termination of tax agent registrations - May 2020

Overview

The Tax Agent Services Act 2009 (TASA), enacted by the Commonwealth of Australia Parliament, is designed to regulate the tax agent industry, ensuring that tax agents meet professional standards and adhere to the necessary ethical requirements. This legislation aims to address the gap in the regulation of tax agents by providing a robust framework that protects consumers and maintains the integrity of the tax system. The policy objective is to ensure that tax agents are competent, fit, and proper persons, thereby promoting public confidence in the tax system. The Act facilitates the registration, regulation, and oversight of tax agents and tax (financial) planners, empowering the Tax Practitioners Board to terminate, suspend, or otherwise manage the registrations of tax agents who fail to meet the standards set forth in the Act.

Scope and Application

The Tax Agent Services Act 2009 (TASA) applies to tax agents and tax (financial) planners who provide services relating to taxation laws in Australia. It governs the conduct of individuals and entities engaged in such services, ensuring they meet the required standards of competence and integrity. The Act has a national jurisdictional reach across Australia, applicable to all states and territories. However, the Act does not cover all tax-related activities, and specific exclusions or exemptions are outlined in its provisions. The application of the Act may be extended or restricted through subordinate instruments such as regulations or codes of conduct. The termination, suspension, or cessation of tax agent registrations as detailed in the gazette is an enforcement mechanism under the Act, ensuring compliance with its requirements and protecting the interests of clients and the public.

Key Provisions

The Tax Agent Services Act 2009 (TASA) outlines several key provisions concerning the regulation of tax agents in Australia. Under section 104E of the Act, the Tax Practitioners Board has the authority to terminate the registration of tax agents. The gazetted notice, C2020G00943, specifies the termination of registration for various tax agents, either due to surrender of their registration or because they no longer meet the registration requirements (sections 104D and 104E). The terminations were effective from 12 May 2020, and in some cases, as late as 22 May 2020, depending on the reason for the termination. Additionally, section 104E of the Act also provides for the suspension of a tax agent's registration. In the gazetted notice, David Ernest Eley's registration was suspended from 14 May 2020 due to failure to comply with the code of professional conduct (section 104F). The Act imposes specific obligations on tax agents, including maintaining certain professional standards and complying with the code of professional conduct. The Tax Practitioners Board monitors these obligations and can take action if an agent fails to meet the required standards. Under section 104G of the Act, the Board has the power to cancel or suspend the registration of a tax agent if they determine that the agent is unfit to hold a registration. This can occur if the agent surrenders their registration, ceases to exist, or no longer meets the registration requirements, as detailed in the gazetted notice. Breaches of the Act can result in significant penalties and consequences. Section 104H of the Act outlines that failure to comply with the code of professional conduct can lead to the suspension or termination of a tax agent's registration. The notice highlights instances where agents' registrations were terminated due to their failure to comply with the code of professional conduct, such as in the case of Tax Expo Pty Ltd. Furthermore, under section 104J of the Act, tax agents who engage in dishonest or dishonourable conduct can face criminal penalties, including fines of up to $21,000 for individuals and $105,000 for bodies corporate, as well as potential imprisonment. The enforcement of these penalties ensures that tax agents adhere to the standards set forth by the Tax Practitioners Board, maintaining the integrity of the tax system.