Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT (No. 2) 1988No. 78, 1988 - SECT 49

49. After section 251K of the Principal Act the following headings and
sections are inserted:

"Division 4-Registration of Nominees of Tax Agents Original nominee to be
registered as a nominee

"251KA. (1) Where a partnership or company is registered by a Board as a tax
agent under section 251JA or 251JC, the person specified in the application
for registration or re-registration as the original nominee of the partnership
or company, as the case may be, shall be registered by the Board as a nominee
of the tax agent for the purposes of this Part.

"(2) Where a partnership or company is registered as a tax agent during a
particular period because of subsection 251JC (4), the person specified in the
application for re-registration as the original nominee of the partnership or
company, as the case may be, shall be taken to have been registered as a
nominee of the tax agent for the purposes of this Part during that period.

"(3) Where a person or partnership is registered as a tax agent under section
251JF, the person or each of the persons specified in the application for
registration as the original nominee or as the original nominees of the person
or partnership, as the case may be, shall be registered by the Board concerned
as a nominee of the tax agent for the purposes of this Part. Applications for
registration or re-registration of nominees

"251KB. (1) A person or partnership may, in an application made for the
purpose, request a Board to register or re-register, as a nominee of the
person or partnership for the purposes of this Part:

   (a)  in the case of a partnership-a partner or an employee of the
        partnership; or

   (b)  in the case of a natural person or company-an employee of the person
        or company.

"(2) An application shall be accompanied by a lodgment fee of:

   (a)  if the proposed nominee is not already registered as a nominee of the
        person or partnership-$80, or such higher fee as is prescribed; or

   (b)  if the proposed nominee is already registered as a nominee of the
        person or partnership-$5, or such higher fee as is prescribed; which
        the Board shall pay to the Commissioner.

"(3) An application shall be in the approved form and shall be accompanied by
such information as is required by the form to be provided.

"(4) An application for re-registration as a nominee of a tax agent shall be
made:

   (a)  during the period:

        (i)    commencing 60 days before; and

        (ii)   ending 30 days before;
the day on which the existing registration ceases to be in force; or

   (b)  if the Board, on request in writing made by the tax agent, allows the
        application to be made at a later time but before the existing
        registration ceases to be in force-before that later time.

"(5) Where a Board makes a decision refusing to allow a later time for the
making of an application for re-registration, the Board shall cause to be
served on the applicant and on the proposed nominee a notice in writing
setting out that decision and giving the reasons for that decision.
Registration and re-registration of nominees of tax agents

"251KC. (1) The Board shall register or re-register the proposed nominee as a
nominee of the tax agent for the purposes of this Part if the Board is
satisfied that the proposed nominee is a fit and proper person to prepare
income tax returns and transact business on behalf of taxpayers in income tax
matters.

"(2) The Board shall refuse to register or re-register the proposed nominee in
any other case.

"(3) Where the Board makes a decision refusing to register or re-register a
proposed nominee, the Board shall cause to be served on the applicant and on
the proposed nominee a notice in writing setting out that decision and giving
the reasons for that decision.

"(4) Where:

   (a)  a Board makes a decision refusing to re-register a proposed nominee as
        a nominee of a tax agent;

   (b)  notice of that decision was served on the proposed nominee at a time
        (in this subsection called the 'notice time') after the time (in this
        subsection called the 'expiry time') when the existing registration
        ceased to be in force; and

   (c)  the tax agent was registered during the whole or a part of the period
        (which whole or part is in this subsection called the 'post-expiry
        period') commencing at the expiry time and ending at the notice time;
        the proposed nominee shall be taken to have been registered as a
        nominee of the tax agent during the post-expiry period. Duration of
        registration of nominees

"251KD. (1) The registration of a nominee granted by a Board comes into force,
or shall be deemed to have come into force, as the case requires:

   (a)  if the registration was granted by way of the re-registration of an
        existing registration-immediately after the existing registration
        ceases or ceased to be in force;

   (b)  if the registration was granted under section 251KA-at the time when
        the registration of the tax agent concerned came or comes into force;
        or

   (c)  in any other case-on the day on which it was granted.

"(2) A person ceases to be a registered nominee of a tax agent if:

   (a)  in a case where the tax agent is a natural person-the nominee ceases
        to be an employee of the tax agent;

   (b)  in a case where the tax agent is a partnership-there comes a time when
        the nominee is neither a member of the partnership nor an employee of
        the partnership;

   (c)  in a case where the tax agent is a company-the nominee ceases to be an
        employee of the company;

   (d)  the tax agent notifies the Board by which it was registered that the
        tax agent no longer desires that person to be its nominee;

   (e)  the registration of the nominee is cancelled;

   (f)  the nominee dies; or

   (g)  the registration of the tax agent is terminated, cancelled,
        surrendered or otherwise ceases to be in force. Cancellation of
        registration of nominees

"251KE. (1) A Board may cancel the registration of a nominee of a tax agent if
the Board is satisfied that the nominee is not a fit and proper person to
prepare income tax returns and transact business on behalf of taxpayers in
income tax matters.

"(2) Where a Board makes a decision cancelling the registration of a nominee
of a tax agent, the Board shall cause to be served on the tax agent and on the
nominee a notice in writing setting out that decision and giving the reasons
for that decision.

"Division 5-Refund of Lodgment Fees Refund of lodgment fees if application
withdrawn

"251KF. Where:

   (a)  an application under section 251J, 251JB or 251KB is withdrawn; and

   (b)  the application was neither granted nor refused before the withdrawal;
        the Commissioner shall refund the lodgment fee paid in respect of the
        application.

"Division 6-Notification Obligations of Tax Agents etc. Tax agents who are
natural persons

"251KG. A natural person who is registered as a tax agent shall forthwith
notify the Board by which the tax agent was registered if:

   (a)  the person becomes an undischarged bankrupt;

   (b)  the person permanently ceases to carry on business as a tax agent; or

   (c)  a person who is a registered nominee of the tax agent for the purposes
        of this Part ceases to be employed by the tax agent.
Penalty: $500. Tax agents that are partnerships

"251KH. A partnership that is registered as a tax agent shall forthwith notify
the Board by which it was registered if:

   (a)  a partner becomes an undischarged bankrupt;

   (b)  a person becomes an executive officer of a partner that is a company;

   (c)  a person who is a registered nominee of the partnership for the
        purposes of this Part and was employed by the partnership at the time
        the person was last registered as a nominee ceases to be employed by
        the partnership; or

   (d)  the partnership permanently ceases to carry on business as a tax
        agent.
Penalty: $500. Changes in the constitution of partnerships

"251KJ. (1) Where:

   (a)  a partnership is registered as a tax agent; and

   (b)  there is a change in the constitution of the partnership; each person
        who was a partner immediately before the change shall forthwith notify
        the Board by which the tax agent was registered.

"(2) A person who was a partner in a partnership immediately before a change
in the constitution of the partnership is not guilty of an offence against
subsection (1) in relation to that change if another person who was a partner
in the partnership immediately before that change complies with subsection
(1).
Penalty: $500. Tax agents that are companies

"251KK. (1) A company that is registered as a tax agent shall forthwith notify
the Board by which it was registered if:

   (a)  the company goes into liquidation;

   (b)  any person who is a nominee of the company for the purposes of this
        Part ceases to be employed by the company;

   (c)  a person becomes an executive officer of the company; or

   (d)  the company permanently ceases to carry on business as a tax agent.

"(2) A registered tax agent that is a non-exempt company shall forthwith
notify the Board if it has reasonable grounds to believe that the company has
ceased to be a company in which qualified directors have a substantial
interest. Penalty: $500.
         "Division 7-Privileges and Duties of Registered Tax Agents".