Termination of tax (financial) adviser registrations - December 2018

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Parliament of Australia to establish a robust regulatory framework governing tax (financial) advisers. This legislation was introduced to address the need for a regulated profession providing tax services, ensuring that advisers meet specific standards of competence and conduct. The act aims to protect the public by maintaining high standards of professional conduct and competence among tax (financial) advisers, ensuring that they are fit and proper to provide tax services. The Tax Practitioners Board, established under this act, is responsible for the registration and regulation of tax (financial) advisers, including the ability to terminate registrations when necessary to uphold these standards.

Scope and Application

The Gazette C2020G00095 issued by the Tax Practitioners Board pertains to the termination of registration of various tax (financial) advisers under subdivision 40-A of the Tax Agent Services Act 2009 (TASA). This legislation applies to specific individuals and entities authorised to provide tax agent services in Australia. The terminations listed were effective from 21 December 2018 and include reasons such as voluntary surrender of registration, cessation of existence of the entity, individual ceasing to meet one of the tax practitioner requirements, and the death of the individual. The terminations cover a broad range of financial services companies and individual tax advisers from various parts of Australia, signifying the Act's nationwide application. Notably, the Act may be further defined or expanded through subordinate instruments, which allows for more specific regulations or additional exclusions to be implemented as necessary.

Key Provisions

The Tax Agent Services Act 2009 (TASA) governs the registration and conduct of tax practitioners in Australia, and the gazette (C2020G00095) lists the termination of several tax practitioner registrations by the Tax Practitioners Board (TPB). Under this Act, tax practitioners must meet specific requirements to maintain their registration. The reasons for termination of registration, as outlined in the gazette, include surrender of registration (sections 40-125 and 40-130 of TASA), cessation of business (sections 40-115 and 40-120), and ceasing to meet the tax practitioner requirements (section 40-105). The gazette also notes the cessation of entities due to the business ceasing to exist (sections 40-115 and 40-120). The Act imposes several obligations on registered tax practitioners, including maintaining professional indemnity insurance (section 40-65), adhering to the Tax Practitioners Board’s Code of Professional Conduct (section 40-140), and completing continuing professional development (section 40-165). Furthermore, tax practitioners must ensure they comply with all relevant legislative requirements and notify the TPB of any changes to their personal or business details (sections 40-5 and 40-20). The Act also mandates that tax practitioners provide accurate and reliable tax advice, maintain proper records, and ensure client confidentiality (sections 40-85 and 40-90). The Act includes provisions for penalties and consequences for non-compliance. For example, section 40-260 of the Act allows the TPB to impose administrative penalties, including fines, for various breaches. The maximum penalty for serious breaches can be up to $21,000 for individuals and $105,000 for bodies corporate (section 40-265). Additionally, under section 40-280, the TPB can disqualify individuals from being registered tax practitioners for periods ranging from one to five years or permanently, depending on the severity of the breach. Criminal offences under the Act can lead to imprisonment, with penalties varying based on the offence's seriousness (sections 40-290 and 40-295). The Act also provides for civil penalties, which can include compensation for loss or damage resulting from the breach (section 40-300).