Termination of tax agent registrations - October 2017

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Australian Parliament to regulate the conduct of tax agents and tax (financial) planners in Australia. The Act addresses the need for maintaining professional standards and conduct among tax agents, ensuring that they operate with integrity and competence. The objective is to protect the public and maintain confidence in the tax system by ensuring that tax agents are fit and proper persons to provide tax services. The Act empowers the Tax Practitioners Board to terminate the registration of tax agents who no longer meet the required standards or have ceased to be fit and proper persons to hold a registration. The terminations listed in the Gazette include instances where agents have surrendered their registrations, ceased to exist, or failed to comply with the code of professional conduct.

Scope and Application

The Tax Agent Services Act 2009 (TASA) applies to tax agents and tax (financial) planners who provide tax services to clients. This includes individuals and entities that are registered under the Act and who engage in the provision of tax agent services. The Act covers a wide range of conduct and transactions involving tax services, including the preparation and lodgement of tax returns, providing tax advice, and managing tax compliance. The Act applies on a national level, across all states and territories of Australia, thereby ensuring consistent standards and regulation of tax agents throughout the country. The Act includes provisions for exclusions and exemptions, particularly for certain small businesses and low-income earners, as well as for certain types of tax agents who are subject to different regulatory requirements. The application of the Act can be extended or restricted through subordinate instruments, such as regulations and codes of professional conduct, which provide further detail on specific aspects of tax agent services and professional conduct.

Key Provisions

The main operative sections of the Gazette, C2017G01236, are under subdivisions 40-A and 30-B of the Tax Agent Services Act 2009 (TASA), detailing the termination of tax agent registrations. Subdivision 40-A governs the termination of registrations due to various reasons, including surrender by the tax agent, the agent's death, or the entity ceasing to exist. Subdivision 30-B deals with the termination of registrations for failure to comply with the code of professional conduct. Specifically, Section 40-50(1) allows the Tax Practitioners Board to terminate a tax agent's registration if the agent surrenders their registration, as was the case with many agents listed in the Gazette. Section 40-60(1) covers terminations due to the death of the tax agent, while Section 30-65(1) pertains to terminations for failure to comply with the code of professional conduct. The obligations and requirements imposed by the Act on the parties or entities it governs include maintaining compliance with the code of professional conduct and timely notification to the Tax Practitioners Board in cases of surrender, death, or cessation of business. The Act also mandates that tax agents keep their registration details updated and report any changes promptly. For example, if a tax agent decides to surrender their registration, they must formally notify the Board and ensure all obligations are fulfilled before the effective termination date. Similarly, in cases of death, the executor of the estate must notify the Board to effect the termination. Failure to comply with the requirements of the Act can result in significant consequences. Under Section 40-100, any tax agent found guilty of failing to comply with the code of professional conduct faces termination of their registration, as evidenced by the listed agents terminated under subdivision 30-B. The maximum penalty for such breaches is detailed in Section 40-110, which includes fines up to a specified amount and, in some cases, imprisonment. Additionally, continued practice by a deregistered tax agent can result in further penalties, including fines and imprisonment as stipulated in Section 40-120. These provisions ensure that the Act's standards are upheld and that unregistered or non-compliant tax agents do not continue to operate.