Termination of Tax (financial) Adviser registrations - June & July 2017

Overview

The Tax Agent Services Act 2009 (TASA) was enacted to establish a regulatory framework governing tax practitioners in Australia, aiming to ensure that individuals and entities providing tax services are competent and operate ethically. The Act was introduced to address the need for a more structured and reliable system for tax practitioners, which was lacking in previous arrangements. The objective of the Act, as outlined, is to protect the public by ensuring that tax agents and tax (financial) advisers meet certain standards of professional competence and conduct. The Act is administered by the Tax Practitioners Board, which has the authority to register tax practitioners and to terminate registrations where appropriate. The Board’s actions, as evidenced by the terminations listed in the Gazette, reflect its commitment to upholding the integrity of the tax profession by removing from the register those who no longer meet the required standards or who have ceased operations.

Scope and Application

The Termination of Tax (Financial) Adviser registration under the Tax Agent Services Act 2009 (TASA) applies to individual tax (financial) advisers and entities that have been registered under the Act but have had their registration terminated. The termination of registration may occur for reasons such as surrender, cessation of business, or death of the individual. The Act applies at the national level across Australia, overseen by the Tax Practitioners Board, which has the authority to terminate registrations as per subdivision 40-A of the TASA. There are no specific exclusions or thresholds stated in the provided text, but the termination of registration can be effected through subordinate instruments as authorised by the Act. The geographic reach of the Act is nationwide, affecting registered tax (financial) advisers and entities throughout Australia.

Key Provisions

The Tax Practitioners Board has exercised its authority under subdivision 40-A of the Tax Agent Services Act 2009 (TASA) to terminate the registrations of various Tax (financial) Advisers and entities. This decision impacts several individuals and businesses, as detailed in the Gazette (C2017G00901). The terminations are effective from different dates, with the earliest being 13 June 2017, and the latest being 25 July 2017. The reasons for these terminations are uniformly listed as "Surrender" or "Cease to Exist", indicating that the registrations were either voluntarily surrendered or the entities ceased to exist, respectively. The obligations imposed by the Tax Agent Services Act 2009 (TASA) on the parties governed by it include maintaining certain professional standards and complying with the registration requirements. These obligations ensure that Tax (financial) Advisers provide services with integrity and competence, and adhere to the legislative framework designed to protect the public and maintain the integrity of the tax system. Failure to comply with these obligations can lead to the termination of registration, as seen in this Gazette. The consequences for breach of the provisions of the Tax Agent Services Act 2009 (TASA) can be severe. The Act provides for both civil and criminal penalties for non-compliance. Civil penalties may include fines, while criminal penalties can include imprisonment. The specific maximum penalties are not detailed in this Gazette but are outlined in the Act itself. The termination of registration is a direct consequence of breaches severe enough to warrant such action, underscoring the importance of adherence to the legislative requirements.