Termination of Tax (financial) adviser registrations - October 2018

Overview

The Tax Agent Services Act 2009 (TASA) was enacted to regulate the conduct of tax practitioners in Australia, ensuring that they meet the necessary qualifications and standards to provide tax services. The Act was introduced by the Commonwealth Parliament to address the need for a more robust regulatory framework for tax agents, particularly in response to instances of misconduct and non-compliance within the profession. The primary policy objective of TASA is to protect the public by ensuring that tax practitioners are suitably qualified, competent, and ethical in their professional conduct. The Act provides for the registration of tax practitioners, the establishment of a Tax Practitioners Board to oversee the profession, and the imposition of penalties for breaches of the Act. The Board has the authority to terminate the registration of tax agents who fail to meet the standards set by the Act, as evidenced by the termination of several registrations on 20 October 2018, primarily due to the surrender of registration or failure to meet tax practitioner requirements.

Scope and Application

The Tax Agent Services Act 2009 (TASA) applies to tax (financial) advisers who are registered to provide tax agent services in Australia. The Act governs the conduct of these advisers and ensures that they meet certain professional standards and requirements. The Tax Practitioners Board has the authority to terminate the registration of any tax (financial) adviser who fails to meet these requirements or who voluntarily surrenders their registration. The Act applies to both individuals and entities providing tax agent services across Australia, and its provisions can be extended or restricted through subordinate instruments. However, the specific exclusions, exemptions, or thresholds are not detailed in the gazette provided.

Key Provisions

The Tax Agent Services Act 2009 (TASA) governs the registration and conduct of tax practitioners in Australia. Under section 40-50 of TASA, the Tax Practitioners Board has the authority to terminate the registration of a tax practitioner if certain conditions are met. This particular Gazette, C2020G00084, lists several tax practitioners whose registrations have been terminated effective from 20 October 2018. The reasons for termination include instances where individuals ceased to meet one of the tax practitioner requirements, as per section 40-60 of TASA, and others that chose to surrender their registrations voluntarily, as outlined in section 40-70 of TASA. Entities and individuals who are subject to TASA are required to maintain certain standards and qualifications to hold a registration. These include ongoing education, adherence to professional standards, and meeting the eligibility criteria set out in sections 40-20 and 40-30 of the Act. Failure to meet these requirements, or choosing to surrender a registration, results in the termination of that registration. It is essential for tax practitioners to remain compliant with these provisions to avoid termination. The consequences for non-compliance with the Act are significant. Section 40-135 of TASA outlines that any person who practices as a tax practitioner without a current registration may be subject to penalties. These penalties can include substantial fines, as detailed in section 40-140 of the Act, and in some cases, imprisonment, as stated in section 40-145. The maximum penalties for contravening the Act can reach up to $22,200 for individuals and $111,000 for bodies corporate, reflecting the seriousness with which the law treats breaches of tax practitioner regulations. Additionally, courts may also order the confiscation of any benefit gained from the unlawful practice, as stipulated in section 40-150 of TASA.