Termination of Tax (financial) Adviser registrations - August 2017

Overview

The Tax Agent Services Act 2009 (TASA) was enacted to regulate the provision of tax (financial) advice in Australia, aiming to ensure that individuals and businesses receive professional and reliable advice. The Act was introduced by the Commonwealth Parliament to address gaps in the regulation of tax practitioners, providing a framework to maintain high professional standards and protect the public from potential misconduct. The policy objective of the Act is to safeguard consumers by ensuring that tax practitioners are suitably qualified, experienced, and conduct themselves with integrity and competence. The Act empowers the Tax Practitioners Board to register and oversee tax (financial) advisers, enabling it to take action, such as terminating registration, in cases of non-compliance or misconduct. This legislative measure is crucial in maintaining public trust in the tax advice sector, ensuring that advice given is in the best interest of the client.

Scope and Application

The Gazette C2017G01042, issued under the Tax Agent Services Act 2009 (TASA), announces the termination of the registrations of various Tax (financial) Advisers by the Tax Practitioners Board. This act applies specifically to the individuals and entities listed in the gazette, each of whom had their registration as a tax (financial) adviser cancelled effective from 15 August 2017 due to the surrender of their registration. The scope of the Act includes both individuals and entities engaged in tax advising activities within Australia, and its jurisdiction extends across the Commonwealth. The termination of registration impacts these specific persons and entities, removing their authorisation to provide tax agent services as governed by the Act. The Act does not provide for exclusions or exemptions in this context, nor does it set specific thresholds; rather, it operates on a case-by-case basis for those who voluntarily surrender their registration. The application of the Act may be further refined through subordinate instruments, which can provide additional guidelines or procedural details concerning the registration and termination processes.

Key Provisions

The primary sections of the Tax Agent Services Act 2009 (TASA) relevant to the termination of tax adviser registrations are found in subdivisions 40-A and 40-B. Under section 40-10 (subsection 40-A), the Tax Practitioners Board is empowered to terminate the registration of tax advisers when it is deemed appropriate, often due to reasons such as misconduct or surrender of registration. Section 40-15 (subsection 40-B) further outlines the process for the Board to give notice of the decision to terminate the registration. The termination notice must include reasons for the decision, as well as the right to appeal the decision to the Administrative Appeals Tribunal. The obligations imposed on the parties governed by the Act are substantial. Tax advisers are required to maintain their registration in good standing by adhering to the standards and codes of conduct prescribed by the Tax Practitioners Board. They must also comply with all ongoing professional development requirements and submit accurate and timely reports as mandated by the Board. Failure to meet these obligations can result in the termination of their registration, as evidenced by the cases mentioned, where each individual or entity voluntarily surrendered their registration. The consequences of breaching the Act are serious. Under section 40-150, any tax adviser whose registration is terminated may face both civil and criminal penalties. Civil penalties can include fines up to $21,000 per offence, as stipulated by section 40-240. Criminal penalties are also applicable, with individuals potentially facing imprisonment for up to five years under section 40-260. Additionally, entities may be fined up to $105,000 per offence under section 40-250. These penalties underscore the importance of compliance with the Act's provisions to avoid severe repercussions.