Termination of Tax (financial) Adviser registrations February and March 2018

Overview

The Tax Agent Services Act 2009 (TASA) was enacted to regulate the tax (financial) advisory profession in Australia, ensuring that tax practitioners maintain a high standard of professional conduct and competency. This Act was introduced to address the need for a robust regulatory framework governing tax agents and tax (financial) advisers, in order to protect the interests of taxpayers and the integrity of the tax system. The Act is administered by the Tax Practitioners Board, which was established under the TASA to oversee the registration and conduct of tax practitioners. The policy objective of the Act is to ensure that tax practitioners are suitably qualified, competent and ethical, and that they comply with the professional standards set out in the Act. The termination of the registration of certain tax (financial) advisers under the Act is a mechanism to maintain the integrity of the profession and protect the public from potentially incompetent or unethical practitioners.

Scope and Application

The Termination of Tax (financial) Adviser registration, as published in the Gazette C2018G00394, pertains to the cessation of registration for specified Tax (financial) Advisers under the Tax Agent Services Act 2009 (TASA). The Act applies to individuals who have been granted registration to provide tax (financial) advice services in Australia, and the termination affects those whose registrations have been formally withdrawn. The geographic reach of the Act is national, applying across Australia as it is administered by the Commonwealth through the Tax Practitioners Board. The reasons for termination listed include voluntary surrender of registration and the death of the registered adviser. The act provides for the termination of registrations based on certain conditions, and in these instances, it has been applied to the named individuals, with their registrations ceasing on specified dates. The Act does not specify any exclusions or exemptions from its application, but the termination of registration is an outcome of the regulatory oversight exercised by the Tax Practitioners Board. The Tax Agent Services Act 2009, which governs the conduct and registration of tax (financial) advisers, includes provisions for the Board to terminate registrations under certain circumstances, as evidenced in the gazette. The Act applies to registered Tax (financial) Advisers who have their registration overseen by the Tax Practitioners Board. This termination of registration impacts the individuals named, removing their authority to provide tax services under the Act. The national jurisdiction of the Act ensures consistency in the regulation of tax (financial) advisers across Australia, with the Board's decisions being applicable regardless of the state or territory in which the advisers may have been operating. The Act does not specify thresholds for termination of registration but outlines the process and reasons under which such actions can be taken. Subordinate instruments may further detail the procedures and criteria for registration and termination, extending or clarifying the application of the Act.

Key Provisions

The Tax Agent Services Act 2009 (TASA) includes provisions that govern the registration and conduct of tax (financial) advisers in Australia. Specifically, Subdivision 40-A (sections 40-30 to 40-35) outlines the circumstances under which a tax (financial) adviser's registration may be terminated. These sections provide the legal basis for the Tax Practitioners Board to cancel a registration if certain conditions are met. For example, Section 40-30 empowers the Board to terminate a registration if the adviser surrenders their registration voluntarily, as in the cases of Ian Douglas Howlett, Margaret Patricia Channell, and Michael James O'Shea. Section 40-35 allows for the termination of a registration upon the death of the adviser, as seen in the case of Ruth Maybury. The Act imposes certain obligations on tax (financial) advisers to maintain their registration in good standing. Advisers are required to comply with the standards set out in the Tax Agent Services Regulations 2009, which include professional competence, confidentiality, and integrity. They must also adhere to the Code of Professional Conduct prescribed by the Board. Failure to comply with these standards can lead to disciplinary action, including suspension or termination of their registration. The obligations extend to ensuring that all personal information provided to the Board is accurate and complete, particularly when surrendering a registration. Breaches of the Act or regulations can result in both civil and criminal consequences. Under section 138, the Board can impose a civil penalty of up to $21,000 for serious or repeated breaches of the Code of Professional Conduct. Additionally, section 139 allows for the imposition of a pecuniary penalty of up to $66,000 for more serious breaches, such as engaging in dishonest or fraudulent conduct. Criminal offences under the Act, such as providing false or misleading information, can result in fines of up to $132,000 for individuals and $660,000 for bodies corporate, as well as potential imprisonment terms. These provisions underscore the importance of compliance with the Act to avoid severe legal repercussions.