Termination of tax (financial) adviser registrations - January 2017

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Australian Parliament to regulate the tax (financial) advisory profession, aiming to ensure that practitioners provide services competently, ethically, and in the best interests of their clients. The Act addresses the problem of inadequate regulation within the industry, which had led to concerns about the competence and integrity of some tax agents and financial advisers. The Act establishes the Tax Practitioners Board, which is responsible for the registration and ongoing monitoring of tax practitioners to maintain professional standards. The policy objective of the Act is to protect consumers by ensuring that tax practitioners meet certain professional standards and to promote confidence in the tax profession. The gazette C2017G00192, issued by the Tax Practitioners Board, lists the terminations of registrations of several tax advisers and one company, all effective due to the practitioners surrendering their registrations. This action underscores the Board’s commitment to maintaining the integrity of the profession by removing from the register those who are no longer practising or have voluntarily relinquished their registration.

Scope and Application

The Termination of Tax (financial) Adviser registration as detailed in C2017G00192 (Gazette) pertains to the cancellation of registration for specified tax advisers under the Tax Agent Services Act 2009 (TASA). The individuals whose registrations have been terminated include Paul Sheldon, Justin Addison, Ashley Richard Andrew, and Sharlene Halvorsen, with the termination taking effect from specified dates due to surrender of their registrations. Additionally, the corporate entity Green Wealth Services Pty Ltd also had its registration terminated as of 24 January 2017 for the same reason. The Act applies to natural persons and legal entities registered as tax advisers, governing their professional conduct and the scope of their practice within Australia. The jurisdiction of the Act extends across the Commonwealth of Australia, with the Board headquartered in Sydney, NSW. The terminations are executed under subdivision 40-A of TASA, which delineates the criteria and processes for the removal of registrations. The Act itself does not specify exclusions, exemptions, or thresholds directly in this context, but the application and interpretation of its provisions are subject to subordinate instruments that might further define the application scope.

Key Provisions

The Tax Agent Services Act 2009 (TASA) provides for the regulation of tax practitioners in Australia. Section 104(1) of the Act allows the Tax Practitioners Board to terminate the registration of tax practitioners under certain conditions, such as surrender of registration or failure to meet the requirements of the Act. The gazette C2017G00192 lists several tax advisers whose registrations have been terminated by the Board, effective from specific dates. For example, Paul Sheldon's registration was terminated on 24/01/2017 due to surrender, as stated in section 104(1)(a) of the Act. The obligations and requirements that the Act imposes on tax practitioners are numerous and varied. Section 14 of the Act sets out the standards of professional conduct that tax practitioners must adhere to, including being honest, competent, and acting in the best interests of their clients. Section 15 outlines the requirements for continuing professional education, ensuring that tax practitioners maintain and enhance their professional skills and knowledge. Additionally, section 40 mandates that tax practitioners must hold appropriate professional indemnity insurance to protect clients from financial loss resulting from professional negligence. The Act also requires tax practitioners to keep accurate and complete records of their work and to report any breaches of the Act or its regulations to the Board. Breaches of the Act can result in a range of civil and criminal consequences. Under section 166, a tax practitioner who engages in conduct that is dishonourable or unprofessional can be subject to disciplinary action by the Board, including suspension or cancellation of their registration. Section 168 allows for the imposition of fines for breaches of the Act, with the maximum penalty varying depending on the nature and severity of the breach. In more serious cases, criminal charges can be brought against tax practitioners who engage in fraudulent or dishonest conduct, with penalties including imprisonment and substantial fines. The Act also provides for the recovery of costs incurred by the Board in investigating and prosecuting breaches of the Act. In summary, the Tax Agent Services Act 2009 sets out a comprehensive framework for the regulation of tax practitioners in Australia. The Act imposes a range of obligations and requirements on tax practitioners, including maintaining professional standards, engaging in continuing education, and holding appropriate insurance. Breaches of the Act can result in disciplinary action, fines, and criminal charges, with the severity of the penalties depending on the nature and severity of the breach. The gazette C2017G00192 provides a list of tax advisers whose registrations have been terminated by the Tax Practitioners Board, highlighting the importance of compliance with the Act.