Termination of Tax (financial) Adviser registration - Tax Practitioners Board Gazette December 2016

Overview

The Tax Agent Services Act 2009 (TASA) was enacted to establish a regulatory framework governing tax (financial) advisers in Australia, aiming to safeguard the integrity and competence of the tax advice industry. The Act was introduced by the Australian Parliament to address the need for a structured regulatory system that ensures tax practitioners maintain high professional standards and ethical practices. The policy objective of the TASA is to protect the public interest by promoting the professional competence and integrity of tax agents, thus ensuring that they act in the best interests of their clients while complying with relevant legislative requirements. The Tax Practitioners Board, as the body responsible for the administration of the TASA, exercises its authority to maintain the integrity of the tax advice profession. The Board has the power to terminate the registration of tax (financial) advisers, as seen in the case of Matthew James Brendan Wright, whose registration was terminated on 13 December 2016 due to the adviser's surrender of their registration. Such actions by the Board underscore the commitment to upholding the standards set forth by the TASA, ensuring that only qualified and compliant professionals are permitted to provide tax services in Australia.

Scope and Application

The Termination of Tax (financial) Adviser registration under C2017G00055, published in the Gazette, pertains to the Tax Practitioners Board's authority to terminate the registration of Tax (financial) Advisers pursuant to subdivision 40-A of the Tax Agent Services Act 2009. This Act applies to individuals and entities authorised as Tax (financial) Advisers within Australia, regulating their professional conduct and ensuring compliance with legislative standards. The geographic reach of this Act is national, governing the professional activities of Tax (financial) Advisers across all states and territories of Australia. The Act provides for the termination of registration in cases such as surrender, which is the basis for Matthew James Brendan Wright’s deregistration effective from 13/12/2016. While the Act establishes the primary framework for registration and termination, specific details and further provisions are often elaborated through subordinate instruments. There are no explicit exclusions or exemptions mentioned in the Gazette notification, and the Act applies uniformly to all registered Tax (financial) Advisers without specific thresholds for its application.

Key Provisions

The primary operative sections of the Tax Agent Services Act 2009 (TASA) relevant to the termination of a Tax (financial) Adviser’s registration are found in subdivision 40-A. Section 40-20 permits the Tax Practitioners Board to terminate a registration if the Adviser has surrendered their registration voluntarily. This act of surrender means that the Adviser has agreed to the termination of their registration, which is then carried out by the Board under section 40-25. The obligations imposed by the Act on the parties involved include adherence to the conditions set for registration and ongoing professional conduct. The Tax (financial) Adviser must maintain their registration and comply with all professional standards and requirements set out by the Board (sections 40-5 and 40-10). The Board, in turn, is responsible for overseeing the registration process and ensuring that Advisers meet the necessary standards, including the ability to perform their duties competently and ethically. Should an Adviser fail to meet these obligations, they may face sanctions. Under section 40-125, the Board can impose penalties for breaches of the Act, including fines and suspension or termination of registration. The maximum penalty for serious breaches may include fines of up to $21,000 for individuals and $105,000 for bodies corporate, as stipulated in section 40-140. Additionally, in cases where the misconduct leads to significant financial loss or harm to clients, the Board may also pursue civil remedies or refer the matter to law enforcement for criminal investigation.