Termination of Tax (financial) Adviser registrations - April 2018

Overview

The Tax Agent Services Act 2009 (TASA) was enacted to regulate the conduct of tax practitioners in Australia, ensuring that they meet specific professional standards and are competent to provide tax services. The Act was introduced to address a gap in the regulation of tax practitioners, providing a framework for the registration, conduct and discipline of tax agents and tax (financial) advisers. The policy objective of the Act is to protect the public by ensuring that tax practitioners are qualified, competent and act ethically. The Tax Practitioners Board, established under the Act, is responsible for administering the registration and disciplinary processes for tax agents and tax (financial) advisers. In the case of the listed tax (financial) advisers, their registrations have been terminated by the Board due to their surrender, effective from 10 April 2018. This action highlights the Board's commitment to upholding the integrity of the tax profession in Australia.

Scope and Application

The Tax Agent Services Act 2009 (TASA) governs the conduct and registration of tax (financial) advisers within Australia. This Act applies to individuals and entities that provide tax (financial) services, including those who prepare tax returns and provide tax advice. It is a Commonwealth Act, which means it applies nationally across Australia, ensuring a consistent standard for tax practitioners. The Act includes provisions for the registration, conduct, and disciplinary measures for tax (financial) advisers, ensuring that they meet the necessary professional standards and comply with the regulatory requirements. The Act also provides for the establishment of the Tax Practitioners Board, which is responsible for administering the Act and overseeing the professional conduct of registered tax (financial) advisers. While the Act sets out the primary framework, its application can be further detailed through subordinate instruments, which may provide specific guidelines, rules, or criteria relevant to the registration and conduct of tax (financial) advisers. Exclusions or exemptions are not explicitly detailed in this particular notification but can be found in the broader provisions of the Act.

Key Provisions

The Tax Practitioners Board has exercised its authority under subdivision 40-A of the Tax Agent Services Act 2009 (TASA) to terminate the registration of several Tax (financial) Advisers, effective from 10/04/2018 (section 142A). The terminations listed include individual advisers such as Alan Maxwell Plant, Gregory Bunney, Jin Wei Shi, Raymond Fuchs, Robert Cochrane Lindsay, Tara Annalise Modder, and Yini Long, as well as entities like HM Financial Group Pty Ltd, Innovare Wealth Pty Ltd, and The Junction Financial Planning Pty Ltd. The reason for each termination is a surrender of their registration by the individuals or entities themselves. The Act imposes a number of obligations and requirements on registered Tax (financial) Advisers. These include maintaining professional indemnity insurance, complying with continuing professional education requirements, adhering to a code of professional conduct, and being subject to the oversight of the Tax Practitioners Board. Registered advisers must also ensure they are appropriately skilled and experienced to provide tax services. The termination of registration means that these individuals and entities are no longer authorised to provide tax services and must cease doing so immediately. Failure to comply with the provisions of the Act can result in significant consequences. For example, practising as a Tax (financial) Adviser without holding a valid registration is an offence under section 144 of the Act. Penalties for breaching this provision can include substantial fines and, in some cases, imprisonment. The Act also allows for the Tax Practitioners Board to impose civil penalties for breaches of the Act or its regulations, which can include fines of up to $21,000 for individuals and $105,000 for bodies corporate, as specified in section 142A(6). These penalties reflect the importance of maintaining high standards of conduct and compliance within the tax profession.