Termination of tax (financial) adviser registrations - March 2019

Overview

The Tax Agent Services Act 2009 (TASA) was enacted to establish a robust regulatory framework for tax practitioners, ensuring public protection and maintaining integrity in the tax profession. The legislation was introduced by the Parliament of Australia to address the need for consistent standards and accountability among tax agents and tax (financial) advisers. The policy objective of TASA is to safeguard the public by ensuring that tax practitioners are competent, qualified, and act in the best interests of their clients. The Act provides the Tax Practitioners Board with the authority to register and oversee tax practitioners, including the ability to terminate registrations when necessary to protect the public interest. This recent Gazette from the Tax Practitioners Board highlights the Board's ongoing commitment to enforcing the standards set forth by TASA, ensuring the continued integrity and reliability of the tax profession.

Scope and Application

The Tax Agent Services Act 2009 (TASA) governs the registration and conduct of tax (financial) advisers in Australia, ensuring that only qualified individuals and entities provide tax services to the public. The Act applies to any person or entity that provides tax services in Australia, including those who prepare tax returns or provide tax advice. The Act encompasses various forms of tax services, such as preparing and lodging tax returns, providing tax advice, and acting as a tax agent. It applies across the Commonwealth, meaning it has a national reach, applicable in all states and territories of Australia. The Tax Practitioners Board, established under the Act, is responsible for the registration of tax practitioners and overseeing their compliance with professional standards. The Act includes provisions for the suspension or termination of registration in cases of misconduct, failure to meet continuing professional education requirements, or other breaches of the Act or its regulations. The Act's application can be extended or restricted through subordinate instruments, such as regulations and codes of conduct, which provide further detail on the professional standards and conduct expected of tax practitioners. Notably, the Act does not apply to certain activities exempt from its scope, such as services provided by an individual solely for their own use or benefit.

Key Provisions

The Gazette (C2020G00111) outlines the termination of registration for multiple Tax (financial) Advisers under subdivision 40-A of the Tax Agent Services Act 2009 (TASA). The document lists individual advisers and companies, each with their effective termination date and reason. For example, Alexander James Dunshea's registration was terminated on 17/03/2019 due to his death (section 40-35(2)(a)). Most terminations occurred on 29/03/2019, with reasons ranging from surrender of registration to failure to meet tax practitioner requirements. This action effectively removes these entities from the list of registered tax agents, thereby ceasing their ability to provide tax services under the act. Under the Tax Agent Services Act 2009 (TASA), the obligations of a registered tax agent include maintaining professional competence, acting with integrity, and complying with the code of professional conduct set out in the regulations (section 40-35). These obligations ensure that tax agents provide reliable and ethical services to their clients. Registered tax agents must also adhere to continuing professional education requirements to keep their knowledge and skills up to date. Furthermore, they must maintain appropriate insurance coverage and report any changes in their circumstances to the Tax Practitioners Board (section 40-55). The Act imposes various consequences for non-compliance with its provisions. For instance, providing tax services without registration is an offence (section 40-5(1)). The penalties for such offences can include substantial fines and imprisonment, with maximum penalties reaching up to $21,000 and two years in prison for individuals, and $105,000 and ten years for bodies corporate (section 40-5(3)). Additionally, the Tax Practitioners Board has the authority to impose administrative penalties such as fines and suspension or cancellation of registration. These measures are designed to enforce compliance and protect the integrity of the tax system.