The Tax Practitioners Board (TPB) has revealed 27 per cent of the 2748 registered tax financial advisers failed to renew their status in July with the industry body when required to do so.
TPB chair Ian Taylor noted the failure by a practitioner to renew their application to be a registered tax agent actually means the expiry of the existing registration.
“If this applies to you, it is important that you advise your clients that you are no longer registered with the TPB and can no longer provide tax financial advice services,” Taylor said.
“Under the Tax Agent Services Act 2009 (TASA) if you are providing a tax financial advice service for a fee or other reward, you must be registered with the TPB to be able to legally provide that service.”
He pointed out in the event of an adviser allowing their TPB registration to lapse, the practitioner would have to submit a new application and have it approved before they could continue to provide tax advice and be remunerated for it.
Further, he alerted other tax advisers to the impending registration renewal in October.
“There are still 14,400 tax (financial) advisers who need to renew their registration, some as early as October 2017, so make sure you renew your registration on time so that you do not get caught out and jeopardise your practice,” he said.
The TPB noted activities such as being remunerated for providing tax financial advice services, advertising the provision of tax financial services and making representations of being a registered tax financial advice service provider, all while unregistered with the industry body, could result in significant monetary penalties for individuals.
Advisers needing to renew their registered status will receive reminders to do so from the TPB, with the industry body recommending practitioners ensure their contact details are current in the meantime.
