Termination of tax agent registrations - September 2020

Overview

The Tax Agent Services Act 2009 (TASA) was enacted to regulate the conduct and competence of tax practitioners in Australia, thereby protecting the public and maintaining the integrity of the tax system. This legislation was introduced to address gaps in the regulation of tax agents, ensuring that those providing tax services are appropriately qualified and compliant with professional standards. The Act is overseen by the Tax Practitioners Board, which was established under the TASA to administer and enforce the Act. The primary policy objective of the TASA is to ensure that tax agents act in a professional and ethical manner, providing competent and reliable tax services to their clients. The TASA provides mechanisms for the registration, suspension, and termination of tax agent registrations based on various criteria, including professional conduct, competence, and compliance with registration requirements.

Scope and Application

The Tax Agent Services Act 2009 (TASA) applies to tax agents, including individuals and entities, who provide tax agent services in Australia. The Act regulates the professional conduct of tax agents and ensures that they meet certain registration requirements. It applies across the Commonwealth and is administered by the Tax Practitioners Board (TPB), an independent statutory body established under the Act. The Act includes provisions for the termination, suspension, and cancellation of tax agent registrations, as well as the imposition of penalties for breaches of the Act or its regulations. The TPB has the authority to make regulations that extend or restrict the application of the Act, and these regulations have the same force as the Act itself. The Act does not apply to certain persons or entities, such as the Commonwealth or a state or territory government, and there are some exemptions and exclusions to the registration requirements. For example, the Act does not apply to a person who provides tax agent services solely in the course of their employment by another person, or to a company that is a professional services firm and provides tax agent services solely in the course of its business as such a firm. The Act also includes provisions for the investigation of complaints against tax agents and the imposition of disciplinary action, including fines and cancellation of registration, for serious misconduct or professional incompetence. The Act provides for a system of appeals to the Administrative Appeals Tribunal in relation to decisions of the TPB. The Act's scope and application are further defined by the Tax Agent Services Regulations 2009, which provide for matters such as the application and assessment of registration fees, the content of the code of professional conduct, and the format and content of notifications to be given to the TPB. The Act and Regulations are supported by a range of guidance materials, including practice notes and fact sheets, which are available on the TPB's website. The Act and its associated instruments provide a comprehensive framework for the regulation of tax agents in Australia, ensuring that they provide professional and competent services to their clients.

Key Provisions

The Tax Agent Services Act 2009 (TASA) has provisions under which the Tax Practitioners Board can terminate or suspend the registration of tax agents (sections 40-160 and 40-180). The most recent Gazette (C2020G00980) details the termination of registrations for various tax agents, with reasons such as surrender, death, or failure to meet registration requirements (sections 40-170 and 40-185). The terminations took effect from various dates, with most being effective from 1 September 2020, while others occurred later in September. The Act imposes certain obligations on tax agents, such as meeting the registration requirements, adhering to the code of professional conduct, and ensuring that they remain eligible to practise. The termination of registration signifies that the tax agent is no longer authorised to provide tax agent services unless they successfully appeal the decision. Suspension of registration, as seen in the cases of John Patrick Kenny and Phillipe Christopher Colin, also restricts the agent’s ability to provide such services until the suspension is lifted. For breaches of the Act or failure to meet the requirements, the Tax Practitioners Board has the authority to terminate or suspend the registration of a tax agent. The specific consequences depend on the nature of the breach. For example, an agent who surrenders their registration does so voluntarily, while an agent who fails to meet registration requirements or the code of professional conduct faces more severe consequences. The penalties for non-compliance can include fines and imprisonment, with the exact penalties depending on the severity of the offence. The Act does not specify the maximum penalties in the Gazette, but generally, serious breaches can attract substantial fines and lengthy imprisonment terms under sections 40-190 and 40-200 of the Act.