Termination of tax agent registrations - September 2019

Overview

The Tax Agent Services Act 2009 (TASA), enacted by the Australian Parliament, was introduced to address the need for a regulatory framework governing the conduct and practices of tax agents. This Act establishes the Tax Practitioners Board, which is responsible for regulating tax practitioners to ensure compliance with professional standards and protect the public interest. The policy objective of the Act is to enhance the integrity and professionalism of the tax industry, ensuring that tax agents provide services that meet the required standards of competence and ethical conduct. Through this legislation, the Australian government aims to maintain public confidence in the tax system by holding tax agents accountable for their actions and ensuring that they adhere to a code of professional conduct.

Scope and Application

The Tax Agent Services Act 2009 (TASA) applies to tax agents in Australia, including individuals and entities providing tax agent services, encompassing a range of conduct and transactions related to the provision of tax services. The Act operates nationally, ensuring compliance with tax regulations across all states and territories. The legislation sets out the registration requirements for tax agents and establishes the Tax Practitioners Board to oversee these requirements. The Act can be extended or restricted through subordinate instruments, such as regulations or codes of professional conduct. There are specific exclusions and exemptions, such as for certain government entities and specified financial products, as well as thresholds for registration based on the nature and scale of services provided. The termination of tax agent registrations, as outlined in the gazette, typically occurs due to reasons such as surrender of registration, failure to comply with the code of professional conduct, or an individual no longer meeting registration requirements.

Key Provisions

The main operative sections of the Tax Agent Services Act 2009 (TASA) relevant to the termination of tax agent registrations are sections 40-45 (subsection 40-A) and sections 30-45 (subsection 30-B). Section 40-A pertains to the surrender of registration, while section 30-B addresses the termination due to failure to comply with the code of professional conduct. These sections require the Tax Practitioners Board to oversee the registration process and ensure that tax agents meet the necessary criteria to maintain their registration. The Tax Agent Services Act 2009 imposes several obligations on the parties and entities it governs. Registered tax agents must adhere to the requirements set forth in the Act, including maintaining the requisite qualifications and meeting professional standards. They are also obligated to comply with the code of professional conduct, which includes maintaining client confidentiality, acting with integrity, and avoiding conflicts of interest. Failure to meet these obligations can result in the termination of their registration. Under the Act, there are various consequences for breach, which can include both civil and criminal penalties. For example, if a tax agent fails to comply with the code of professional conduct, their registration may be terminated (section 30-45). The termination of registration effectively prohibits the agent from providing tax agent services. Furthermore, repeated or serious breaches can lead to criminal charges, with potential penalties including fines of up to $22,200 for individuals and $111,000 for bodies corporate, as per section 255 of the Act. These measures ensure that tax agents operate within the legal framework and maintain high professional standards.