Termination of tax agent registrations - November 2019

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Commonwealth Parliament to regulate the conduct of tax practitioners in Australia, thereby protecting consumers from unscrupulous or incompetent practice. This legislation was introduced to address the problem of ensuring that tax agents maintain high standards of professional conduct and competency, ultimately safeguarding the public interest. The policy objective of the Act is to ensure that tax agents are both suitably qualified and ethical in their professional dealings. The Tax Practitioners Board, as the administering body, exercises its powers under this Act to oversee the registration, conduct, and ongoing professional development of tax agents, including the ability to terminate or suspend registrations when necessary to uphold these standards.

Scope and Application

The Tax Agent Services Act 2009 (TASA) governs the registration, conduct, and professional obligations of tax agents in Australia. This legislation applies to individuals and entities providing tax agent services, ensuring they meet specific standards and requirements to maintain their registration. The Act is enforced by the Tax Practitioners Board, which has the authority to terminate, suspend, or otherwise regulate the registration of tax agents. The geographic reach of the Act is national, applying across all states and territories within Australia. The Act includes provisions for exclusions, exemptions, or thresholds that may apply under certain circumstances, though these are typically detailed in subordinate instruments or regulations that extend or restrict the application of the primary Act. This ensures a consistent and comprehensive regulatory framework for tax agents, aimed at maintaining professional standards and protecting the interests of taxpayers.

Key Provisions

The Tax Agent Services Act 2009 (TASA) has undergone recent amendments as evidenced by the gazetted notice C2020G00796. The key provisions of this legislation, particularly sections 40-A and 30-B, are critical in regulating the conduct and registration of tax agents in Australia. Under section 40-A, the Tax Practitioners Board (TPB) has terminated the registration of multiple tax agents and companies, primarily due to the surrender of registration or failure to meet registration requirements (subsection 40-A(2)). For instance, tax agents like Alex Korakis and Allen J Middlebrook & Associates Pty Ltd had their registrations terminated on specific dates due to these reasons. Similarly, section 30-B details the termination of registrations for agents who failed to comply with the code of professional conduct. Notable cases include Andrew Ernest Machar and Corrina Dorothy Cook, whose registrations were terminated due to non-compliance with the professional conduct code. The Act imposes several obligations on tax agents and entities. For tax agents, compliance with the registration requirements and the code of professional conduct is paramount. Any failure to meet these standards can result in the suspension or termination of their registration. Additionally, entities must ensure that their operations and personnel adhere to the stipulated professional conduct codes to maintain their registration status. The Act also mandates that tax agents must renew their registrations periodically and comply with all legislative requirements to continue their practice legally. Failure to comply with the provisions of the Act can result in severe consequences. Under section 30-B(1), the TPB has the authority to suspend or terminate the registration of tax agents who fail to comply with the code of professional conduct. Such actions are intended to protect the integrity of the tax system and maintain public trust in the profession. Additionally, section 40-A(2) allows for the termination of registrations for those who no longer meet the registration requirements or choose to surrender their registration. The penalties for non-compliance can include fines and imprisonment, as outlined in the Act, ensuring that the repercussions of non-compliance are significant and deter future misconduct.