Tax Laws Amendment (2013 Measures No. 3) Act 2013 (120 of 2013)

Schedule 1   Creating a regulatory framework for tax (financial) advice services

Part 1   Main amendments

Tax Agent Services Act 2009

29   After subsection 50-25(1)

Insert:

(1A) You contravene this subsection if:

(a) you are a *registered tax (financial) adviser; and

(b) you employ or use the services of an entity to provide *tax (financial) advice services on your behalf; and

(c) you know, or ought reasonably to know, that:

(i) the entity is not a registered tax (financial) adviser but was previously a registered tax (financial) adviser; or

(ii) the entity is not a registered tax (financial) adviser but was previously a *registered tax agent; or

(iii) the entity is not a registered tax agent but was previously a registered tax agent; or

(iv) the entity is not a registered tax agent but was previously a registered tax (financial) adviser; and

(d) you know, or ought reasonably to know, that the entity’s registration was terminated within the period of 1 year before you first employed, or first used the services of, the entity.

Civil penalty:

(a) for an individual - 250 penalty units; and

(b) for a body corporate - 1,250 penalty units.

Note: Subdivision 50-C of this Act and Subdivision 298-B in Schedule 1 to the Taxation Administration Act 1953 determine the procedure for obtaining a civil penalty order against you.