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Australia Releases Draft Legislation On Tax Service Agent Regime

by Mary Swire, Tax-News.com, Hong Kong

04 June 2008

Australian Assistant Treasurer, Chris Bowen has released for public comment an exposure draft package that will reform the registration and regulation of entities providing tax agent services for a fee.

The package consists of a tax agent services exposure draft Bill, associated draft regulations, the key consequential and transitional provisions supporting the exposure draft, and relevant explanatory materials.

"The proposed reforms aim to improve the registration and regulation of entities providing tax agent services which will provide greater protection and certainty to consumers and increased consistency in registration and appropriate, but flexible regulation for entities providing tax agent services," Bowen commented.

The key elements of the regulatory reforms encapsulated in this package are:

  • A national Tax Practitioners Board (the Board) to replace the existing state-based boards;
  • Registration and regulation of entities providing Business Activity Statement (BAS) services as BAS agents;
  • A legislated Code of Professional Conduct to govern tax agents and BAS agents;
  • A wider and more flexible range of disciplinary sanctions which may be imposed by the Board;
  • Civil penalties and injunctions to replace criminal penalties for certain misconduct by agents and unregistered entities; and
  • ‘Safe harbours’ which provide that, in certain circumstances, taxpayers who engage a tax agent or a BAS agent are not liable to certain administrative penalties that would otherwise ordinarily apply for making a false or misleading statement resulting in a tax shortfall amount, or for lodging a document late.

The package has been developed following consultation with tax professional associations, tax practitioners, government agencies and taxpayers.

According to the Australian government, comments previously received have led to several improvements being made to the exposure draft package.

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