Termination of Tax (financial) Adviser registrations - August 2018

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Commonwealth Parliament to establish a regulatory framework governing the conduct of tax (financial) advisers in Australia. This legislation was introduced to address the need for professional standards and ethical conduct in the tax advisory industry, ensuring that individuals and entities providing tax services are qualified and trustworthy. The Tax Practitioners Board, established under this Act, is tasked with administering the registration and ongoing regulation of tax (financial) advisers, thereby safeguarding the interests of clients and the integrity of the tax system. The policy objective of the Act is to maintain public confidence in the tax profession by ensuring that only appropriately qualified and compliant individuals and entities can operate as tax (financial) advisers.

Scope and Application

The Tax Agent Services Act 2009 (TASA) governs the registration and conduct of tax (financial) advisers in Australia, providing a structured framework to ensure the integrity and competence of those offering tax-related services. The Act applies to both individuals and entities who provide tax services, requiring them to meet specific qualifications and ongoing professional development requirements. The jurisdictional reach of the Act is national, with the Tax Practitioners Board, established under the Act, overseeing the registration process across the Commonwealth of Australia. The Act does not explicitly state exclusions or exemptions, but it does establish a threshold for the qualifications and professional conduct expected of registered tax practitioners. The Act allows for the creation of subordinate instruments to further define and enforce the requirements of registration and professional conduct, thereby extending its application and scope.

Key Provisions

The Tax Agent Services Act 2009 (TASA) governs the registration of tax (financial) advisers in Australia, and the recent Gazette (C2018G00984) announces the termination of registration for multiple entities and individuals effective from 31 August 2018. The reasons for termination are primarily categorised into two groups: either the entities or individuals have surrendered their registrations, or they have ceased to meet the requirements of a tax practitioner. Section 40-10 (2) of TASA outlines the conditions under which registration can be terminated, and the Gazette lists these specific cases, detailing the reasons for each termination. The Act imposes several obligations and requirements on the registered tax (financial) advisers, such as maintaining professional competence, acting with integrity, and adhering to the Code of Professional Conduct set out in Schedule 1 of the Act. Failure to meet these requirements can lead to the cessation of their registration. The obligations extend to providing accurate and timely information to the Tax Practitioners Board, which is mandated by section 40-25 of TASA. This requirement ensures that the Board can effectively monitor compliance and maintain the integrity of the tax profession. Breaches of the obligations and requirements set out in the Tax Agent Services Act 2009 can result in significant consequences. Section 40-40 of TASA specifies that an individual or entity found guilty of an offence can be subject to fines and imprisonment. The maximum penalties for various offences under the Act are substantial, with fines reaching up to $126,000 for corporations and $25,200 for individuals, as per section 40-45 of TASA. Additionally, the Act provides for civil penalties, including pecuniary penalties, which can be enforced through the Federal Circuit Court or the Federal Court, as outlined in section 40-50 of TASA. These provisions underscore the importance of compliance with the Act and the severe repercussions that can follow from non-compliance.