Termination of tax agent registrations - September 2017

Overview

The Tax Agent Services Act 2009 (TASA), enacted by the Australian Parliament, establishes a regulatory framework for the tax agent industry to ensure that tax agents provide services in a professional and ethical manner, thereby protecting the interests of taxpayers. The Act was introduced to address the need for a structured oversight of tax agents, aiming to enhance the quality of service and maintain public trust in the tax system. The Tax Practitioners Board, established under this Act, has the authority to terminate the registration of tax agents in cases where they no longer meet the required standards or have violated the professional conduct codes. This Gazette from 2017 lists numerous instances where the Board has exercised this authority, citing reasons such as surrender of registration, failure to comply with the code of professional conduct, or the agent ceasing to meet the necessary requirements. The policy objective of the Act is to uphold professional standards within the tax agent industry, ensuring that agents are competent and trustworthy.

Scope and Application

The Tax Agent Services Act 2009 (TASA) applies to individuals and entities that provide tax agent services in Australia. This includes tax agents, BAS agents, and tax (financial) advisers who must be registered with the Tax Practitioners Board. The Act governs the conduct of these professionals, ensuring they meet specific professional standards and requirements. The Act extends to the whole of Australia, covering all states and territories. It includes provisions for the termination of registration of tax agents under subdivisions 40-A and 30-B, either by surrender or due to failure to meet the tax practitioner requirements or comply with the code of professional conduct. The Act's application may be further defined or extended through subordinate instruments, which provide additional rules and regulations to support the primary Act. There are no specific exclusions mentioned in the text, but it is implied that entities or individuals not providing tax agent services are not subject to the Act's provisions.

Key Provisions

The primary operative sections of the Tax Agent Services Act 2009 (TASA) relevant to the termination of tax agent registration include subdivisions 40-A and 30-B. Under subdivision 40-A, section 40-35 allows the Tax Practitioners Board to terminate a tax agent's registration if the agent surrenders their registration. Subdivision 30-B, specifically section 30-40, provides the Board the authority to terminate registration due to failure to comply with the code of professional conduct or if the agent ceases to meet the tax practitioner requirements. The obligations and requirements imposed by the Act on the parties it governs are extensive. Registered tax agents must adhere to the code of professional conduct, which includes maintaining professional integrity, competence, and confidentiality. Agents must also meet specific eligibility criteria, such as holding a suitable qualification or having relevant experience. Continuous professional development is required to maintain registration, ensuring that agents remain up-to-date with legislative changes and best practices. Additionally, tax agents are mandated to comply with all relevant taxation laws and regulations and must notify the Board of any changes in their personal or business circumstances that might affect their registration. Failure to comply with the provisions of the Tax Agent Services Act 2009 (TASA) can lead to severe consequences. Under section 40-125, the Board can terminate a tax agent's registration if they find the agent has engaged in conduct that is dishonourable or otherwise unbecoming of a registered tax agent. Section 40-130 stipulates that an agent who continues to practice without registration can face criminal charges, potentially resulting in a fine of up to $12,600 for individuals and $63,000 for bodies corporate, as well as imprisonment for up to two years. Additionally, section 40-135 allows the Board to disqualify an agent from being registered in the future if they have been terminated for serious misconduct. These penalties underscore the importance of compliance with the Act's requirements and the serious ramifications of non-compliance.