Termination of Tax (financial) Adviser registrations - September 2017

Overview

The Tax Agent Services Act 2009 (TASA) was enacted to regulate the conduct and practices of tax practitioners, ensuring they comply with professional standards and maintaining public confidence in the tax system. The Act was introduced by the Australian Parliament to address the need for a regulatory framework that enhances the quality and integrity of tax services provided by registered tax agents and tax (financial) advisers. The overarching policy objective of the Act is to protect the public by ensuring tax practitioners are competent, ethical, and reliable. The Tax Practitioners Board, established under this Act, has the authority to terminate the registration of tax (financial) advisers if certain conditions are met, such as voluntary surrender of registration, which appears to be the reason for the terminations listed in the gazette.

Scope and Application

The Gazette C2017G01241 issued by the Tax Practitioners Board under subdivision 40-A of the Tax Agent Services Act 2009 (TASA) details the termination of registration for specific Tax (financial) Advisers. The Act applies to individual Tax (financial) Advisers and entities providing tax (financial) advice services, requiring them to be registered to ensure compliance with professional standards and ethical conduct. The geographic reach of the Act is national, applying to all Tax (financial) Advisers operating within Australia, regardless of state or territory. The Act includes provisions for the surrender of registrations by the advisers themselves or by entities, as evidenced by the list of individuals and companies whose registrations have been terminated, all effective from specified dates due to their surrender. The Act does not specify exclusions or exemptions but is enforced through subordinate instruments that may further define the scope and application of the legislation.

Key Provisions

The Tax Agent Services Act 2009 (TASA) is a key piece of legislation governing the conduct and registration of tax practitioners in Australia. Specifically, Subdivision 40-A of TASA details the processes and conditions for the termination of registration for Tax (financial) Advisers. Under section 40-165, the Tax Practitioners Board has the authority to terminate the registration of Tax (financial) Advisers under certain circumstances, such as a surrender of registration by the adviser themselves or the entity they represent. The operative sections in this context are sections 40-155 and 40-165, which lay out the conditions under which a registration can be terminated. The obligations imposed on the parties governed by this Act include maintaining the highest standards of professional conduct and compliance with all applicable laws and regulations. Tax (financial) Advisers must ensure that they meet the continuous professional development requirements and adhere to the code of professional conduct set out by the Tax Practitioners Board. Failure to meet these obligations can result in disciplinary action, including the potential termination of their registration. The consequences for breach of the provisions outlined in TASA are significant. Under section 40-155, the Board has the power to terminate the registration of a Tax (financial) Adviser if they find that the adviser has engaged in conduct that is dishonourable or otherwise not of good repute. Section 40-165 specifies the process for termination, including the ability to surrender registration voluntarily. Additionally, any Tax (financial) Adviser found to be in breach of the Act could face civil or criminal penalties. For instance, under section 40-175, a Tax (financial) Adviser found guilty of a civil penalty offence could be fined up to $21,000 for an individual and $105,000 for a corporation, as stipulated in section 40-180. Criminal offences under the Act can result in fines of up to $210,000 for an individual and $1,050,000 for a corporation, as per section 40-185. These provisions underscore the seriousness with which the Board treats non-compliance and the importance of adhering to the regulations set out in TASA.