Termination of tax (financial) adviser registrations - November 2016

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Parliament of Australia to regulate the conduct and practices of tax (financial) advisers in order to protect the public interest. This legislation was introduced to address issues of professional misconduct and incompetence within the tax advisory sector, aiming to ensure that individuals and businesses dealing with tax matters are advised by qualified and ethical professionals. The Act established the Tax Practitioners Board to oversee the registration and conduct of tax practitioners, including the power to terminate registrations when necessary. The policy objective of the Act is to enhance the integrity and competence of tax practitioners, thereby maintaining public confidence in the tax system. The termination of registrations, as seen in the case of Iris Fletcher, Keegan Braye Shuttleworth, and ShuttleWealth Pty Limited, reflects the Board's commitment to upholding these standards by removing individuals or entities that fail to meet the required professional criteria.

Scope and Application

The Tax Agent Services Act 2009 (TASA) applies to tax (financial) advisers and tax agent services within Australia. The Act regulates the conduct and registration of tax practitioners, ensuring they meet certain standards of professional competence and ethical behaviour. The Act applies to individual tax advisers as well as entities providing tax services, and its jurisdiction extends across the Commonwealth of Australia. The TASA specifies conditions for registration, including qualifications and ongoing professional development requirements, and authorises the Tax Practitioners Board to terminate or suspend registrations for reasons such as misconduct or failure to meet professional standards. The scope of the Act is extended through subordinate instruments, which provide detailed regulations and guidelines for its implementation and enforcement. The Act does not explicitly state exclusions or thresholds but focuses on the qualification and ethical conduct of tax practitioners.

Key Provisions

The primary operative sections relevant to the termination of tax (financial) adviser registrations under the Tax Agent Services Act 2009 (TASA) include sections 40-60, 40-65, and 40-70. Section 40-60 provides the general framework for the registration of tax (financial) advisers, while section 40-65 details the grounds upon which the Tax Practitioners Board (TPB) may terminate a registration. Section 40-70 outlines the process and procedures for such terminations. The termination in this case was executed under subdivision 40-A of the Act, which specifically deals with the cessation of registrations. The Act imposes several obligations and requirements on the tax (financial) advisers and the TPB. Tax (financial) advisers are required to maintain their registration and comply with all regulatory requirements, including continuing professional development and adherence to ethical standards. The TPB, on the other hand, is obligated to review applications for registration, monitor compliance, and take action when grounds for termination are met. In this case, the advisers involved, including Iris Fletcher, Keegan Braye Shuttleworth, and ShuttleWealth Pty Limited, have surrendered their registrations as per section 40-65 of the Act. This surrender signifies their voluntary cessation of practice under the Act's regulatory framework. The Act also specifies consequences for non-compliance or improper conduct. Under section 40-80 of the Act, failure to maintain proper registration or unethical conduct can result in penalties. The maximum penalties for breaches include fines of up to $22,200 for individuals and $111,000 for bodies corporate, as stipulated in section 40-85. Additionally, section 40-90 of the Act allows for the possibility of criminal charges against individuals who engage in fraudulent or dishonest behaviour, which could lead to imprisonment. These penalties underscore the seriousness with which the Act treats compliance and ethical conduct among tax (financial) advisers.