Termination of Tax (financial) Adviser registrations - October & November 2017

Overview

The Tax Agent Services Act 2009 (TASA) was enacted by the Parliament of Australia to regulate the tax agent industry, ensuring that individuals and entities providing tax services are qualified and compliant with professional standards. The Act was introduced to address the need for a robust regulatory framework that protects the public and maintains the integrity of the tax system. The policy objective of the Act is to ensure that tax practitioners provide services with competence, integrity, and diligence, thereby fostering public confidence in the tax system. The Tax Practitioners Board, established under the Act, is responsible for enforcing the provisions and can terminate registrations if the practitioners no longer meet the necessary requirements, as evidenced by the terminations listed in the gazette.

Scope and Application

The Tax Agent Services Act 2009 (TASA) applies to individuals and entities that provide tax (financial) advisory services, including the preparation and lodgment of tax returns, in Australia. The Act governs the conduct and professional standards of tax practitioners and establishes the Tax Practitioners Board (TPB) to regulate the tax profession. The TPB's jurisdiction extends across the Commonwealth of Australia, ensuring that tax practitioners meet the necessary standards and comply with the Act. The Act provides for the registration of tax practitioners, sets out the requirements for continuing professional education, and includes provisions for the disciplinary action against non-compliant practitioners. The Act applies to all tax practitioners, including individuals and entities providing tax services, regardless of their geographic location within Australia. The Act does not apply to certain excluded activities, such as the provision of legal advice or financial planning services unrelated to taxation. The Act also provides for the termination of registration of tax practitioners who fail to meet the requirements or who surrender their registration. The Act may be extended or restricted through subordinate instruments, such as regulations or codes of practice, which provide further detail on the obligations of tax practitioners and the processes for registration and disciplinary action.

Key Provisions

The Tax Agent Services Act 2009 (TASA) contains provisions for the registration and regulation of tax agents and financial advisers. Under this Act, the Tax Practitioners Board has the authority to terminate the registration of tax advisers under specific conditions. The operative sections, notably subdivisions 40-A and 30-B, provide the framework for such terminations. Subdivision 40-A pertains to the voluntary surrender of registration, while subdivision 30-B addresses situations where a registered entity fails to meet ongoing regulatory requirements. The obligations imposed by the Act on tax advisers include maintaining compliance with the stipulated requirements for registration and continuing professional education. Registered tax advisers must also ensure that they adhere to the professional standards and ethical guidelines set out by the Tax Practitioners Board. Failure to meet these requirements can result in the termination of their registration. For example, under subdivision 40-A, advisers may voluntarily surrender their registration, while under subdivision 30-B, the Board may terminate registration if a company ceases to meet the necessary criteria. In cases of breach, the Act outlines specific penalties and consequences. For instance, an adviser whose registration has been terminated under subdivision 40-A due to a voluntary surrender is prohibited from acting as a registered tax agent or financial adviser without re-registration. Similarly, under subdivision 30-B, termination due to failure to meet ongoing requirements carries similar prohibitions. Furthermore, repeated or egregious breaches may result in additional penalties, including fines and potential criminal charges, depending on the severity and nature of the offence. The maximum penalties for such breaches are not specified in the text but are generally aligned with the severity of the infraction and the impact on the tax system.