Termination of Tax (financial) Adviser registrations - May 2020

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Parliament of Australia to establish a framework for the regulation of tax (financial) advisers and to ensure that they meet certain standards of professional competence and conduct. The Act was designed to address the need for greater oversight and regulation within the tax profession to protect the public and maintain the integrity of the tax system. The Tax Practitioners Board, established under this Act, is responsible for the registration and regulation of tax practitioners, including tax agents and BAS agents. The policy objective of TASA is to enhance consumer protection by ensuring that tax practitioners are qualified, competent, and act with integrity, thereby fostering public confidence in the tax system. The Gazette C2020G00957 notifies the public of the termination of registration of various tax agents under the TASA, effective from 12 May 2020, for reasons including surrender of registration or ceasing to meet the registration requirements. This action underscores the Tax Practitioners Board’s commitment to maintaining high standards within the tax profession by ensuring that only those who meet the requisite standards remain registered. The termination of registration reflects the Board's role in enforcing the regulatory framework established by the Act to uphold professional standards and protect the public interest.

Scope and Application

The Tax Agent Services Act 2009 (TASA) applies to all tax (financial) advisers providing services in Australia, ensuring they meet specified registration and competency requirements. This legislation mandates that individuals and entities offering tax services must hold a valid registration from the Tax Practitioners Board, which assesses qualifications, experience, and ongoing professional development. The Act applies nationally across Australia, overseen by the Commonwealth government, with its scope extending to the registration, conduct, and practice of tax agents. The Act does not explicitly state exclusions or thresholds but includes provisions for exemptions and deferments in subordinate instruments. These instruments can define specific conditions under which certain advisers might be exempt from certain requirements or obligations, providing flexibility to cater to unique circumstances. The termination of registration, as evidenced in the gazette, is typically due to non-compliance with registration criteria, cessation of business, or voluntary surrender of the registration, reinforcing the importance of adherence to the Act's stipulations.

Key Provisions

Under the Tax Agent Services Act 2009 (TASA), the Tax Practitioners Board (TPB) has the authority to terminate the registration of tax agents who no longer meet the requirements for registration or have ceased to exist. Section 40-20 of the Act empowers the TPB to terminate registrations for reasons such as failing to meet ongoing professional standards, providing misleading information during the registration process, or the entity ceasing to exist. In this case, the TPB has exercised this authority to terminate the registration of multiple tax agents, effective from 12 May 2020. The reasons for termination vary, including some agents no longer meeting registration requirements and others surrendering their registration. The obligations and requirements imposed by the Act on tax agents are stringent. Agents must comply with ongoing professional standards and provide accurate and truthful information during the registration process and throughout their practice. Section 40-15 of the Act details the requirements for maintaining a current registration, including completing continuing professional development and adhering to the code of professional conduct. The Act also mandates that tax agents must be of good fame and character and must not have been convicted of certain criminal offences. Failure to comply with the requirements of the Act can result in serious consequences. Section 40-105 of the Act outlines the offences related to the provision of unregistered tax services, which can result in significant penalties. For individuals, the maximum penalty can include fines of up to $22,200 and/or imprisonment for up to two years, as outlined in section 40-105(1)(a). For bodies corporate, the penalties can be even higher, with fines reaching up to $111,000 under section 40-105(1)(b). Additionally, the Act provides for civil penalties, including pecuniary penalties, which can further compound the financial and reputational damage to non-compliant agents. It is imperative for tax agents to adhere strictly to the requirements to avoid these severe consequences.