Financial Sector Reform (Hayne Royal Commission Response - Better Advice) Act 2021 (115 of 2021)

Schedule 1   Initial amendments

Part 2   Other amendments

Division 1   Amendments

Tax Agent Services Act 2009

118   After Subdivision 50-A

Insert:

Subdivision 50-AA - Conduct that relates to tax (financial) advice services

Table of sections

50-17 Providing tax (financial) advice services if not registered or qualified

50-18 Advertising tax (financial) advice services if not registered or qualified

50-17 Providing tax (financial) advice services if not registered or qualified

You contravene this section if:

(a) either:

(i) you provide a service that you know, or ought reasonably to know, is a *tax (financial) advice service; or

(ii) a service that you know, or ought reasonably to know, is a tax (financial) advice service is provided on your behalf by another person; and

(b) the tax (financial) advice service is not a *BAS service; and

(c) either:

(i) you charge or receive a fee or other reward for providing the tax (financial) advice service; or

(ii) the other person charges or receives a fee or other reward for providing the tax (financial) advice service on your behalf; and

(d) you are not a *registered tax agent or a *qualified tax relevant provider; and

(e) in the case of the tax (financial) advice service provided on your behalf by another person - that other person is not a registered tax agent or a qualified tax relevant provider; and

(f) in the case of you providing the tax (financial) advice service as a legal service - you are prohibited, under a *State law or *Territory law that regulates legal practice and the provision of legal services, from providing that tax (financial) advice service.

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 of Schedule 1 to the Taxation Administration Act 1953 determine the procedure for obtaining a civil penalty order against you.

50-18 Advertising tax (financial) advice services if not registered or qualified

You contravene this section if:

(a) you advertise that:

(i) you will provide a *tax (financial) advice service; or

(ii) another person will provide a tax (financial) advice service on your behalf; and

(b) the tax (financial) advice service is not a *BAS service; and

(c) you are not a *registered tax agent or a *qualified tax relevant provider; and

(d) if the tax (financial) advice service would be provided on your behalf by another person - that other person is not a registered tax agent or a qualified tax relevant provider; and

(e) if the tax (financial) advice service would be provided as a legal service - you are prohibited, under a *State law or *Territory law that regulates legal practice and the provision of legal services, from providing that tax (financial) advice service.

Civil penalty:

(a) for an individual - 50 penalty units; and

(b) for a body corporate - 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.