Termination of Tax (financial) Adviser registrations - December 2017

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Australian Parliament to address the need for regulating the tax and financial advice industry, ensuring that practitioners meet certain professional standards and ethical requirements. The Act was designed to protect the public by establishing a system of registration and ongoing oversight for tax (financial) advisers, thereby fostering confidence in the profession and maintaining the integrity of the tax system. The policy objective of the Act is to ensure that tax (financial) advisers provide services competently, ethically, and in the best interests of their clients. On 19 December 2017, the Tax Practitioners Board announced the termination of the registrations of multiple tax (financial) advisers and entities under subdivision 40-A of TASA, effective from that date. The terminations were due to the advisers surrendering their registrations. This action underscores the Board's commitment to enforcing compliance with the legislative framework and upholding the standards set forth in the Act.

Scope and Application

The Tax Agent Services Act 2009 (TASA) applies to individuals and entities providing tax (financial) advice in Australia, and it is administered by the Tax Practitioners Board (TPB). The Act governs the conduct, registration, and professional standards of tax (financial) advisers, ensuring they meet specific qualifications and adhere to ethical standards. The Act applies nationally across Australia, affecting tax (financial) advisers regardless of where they are located or where their clients reside. However, the Act does not apply to individuals who are not providing tax (financial) advice or entities that do not engage in such activities as their primary business. The scope of the Act can be further refined through subordinate instruments, which may include regulations or codes of conduct issued by the TPB to provide more detailed guidance on the application of the Act. The termination of registration of specific tax (financial) advisers, as listed, signifies that these individuals or entities have surrendered their registration, leading to the cessation of their authorisation to provide tax (financial) advice.

Key Provisions

The Tax Practitioners Board has exercised its authority under the Tax Agent Services Act 2009 (TASA) to terminate the registration of multiple Tax (financial) Advisers as detailed in the gazette (C2018G00144). The effective date of termination for each individual and entity listed is 19 December 2017, and the reason provided for each is "Surrender." This means that the registered Tax (financial) Advisers have voluntarily surrendered their registration, resulting in the cessation of their authorised status under the Act. Under the TASA, the Tax Practitioners Board is responsible for maintaining the register of Tax (financial) Advisers, ensuring they meet the necessary standards and requirements to provide tax services. The Act imposes several obligations on registered Tax (financial) Advisers, including the need to hold appropriate qualifications, maintain professional indemnity insurance, and adhere to the Tax Practitioners Board's code of professional conduct. These requirements are detailed in sections 40-25 and 40-30 of the Act, which mandate that registered Tax (financial) Advisers must be fit and proper persons and possess the necessary skills and knowledge to provide tax services competently. Failure to comply with the obligations and requirements imposed by the TASA can lead to serious consequences. Section 40-155 of the Act outlines various grounds for the termination of registration, including voluntary surrender as seen in this gazette. Furthermore, section 40-150 details the process for the Board to impose conditions on registration, suspend, or cancel a registration if it finds that the registered Tax (financial) Adviser has engaged in conduct that warrants such action. The penalties and consequences for non-compliance can include significant fines and imprisonment, as specified in sections 40-165 and 40-170 of the Act, with maximum penalties up to $132,000 for individuals and $660,000 for bodies corporate. This stringent regulatory framework ensures that the Tax (financial) Advisers operating in Australia maintain high standards of professional conduct and competence.