What is a disqualified entity?
A disqualified entity (DE) is an entity (including an individual) that is not a registered tax agent, BAS agent, or a 'qualified tax relevant provider' (QTRP) and has had an event specified in the Tax Agent Services Act 2009 (TASA) occur in the last 5 years, which disqualifies them from providing tax agent/BAS services on behalf of a registered tax practitioner.
Under the TASA, registered tax practitioners cannot employ or use the services of a 'disqualified entity' to provide tax agent/BAS services on their behalf, without approval from the Tax Practitioners Board (TPB). This means that practitioners must exercise due diligence when employing or using individuals and other entities to ensure they are suitable to provide tax agent services on their behalf.
For a full definition of what is a disqualified entity refer to TPB(I) 41/2024 Code of Professional Conduct – Employing or using a disqualified entity in the provision of tax agent services without approval.
What is the purpose of the Disqualified Entity requirements?
The measures are intended to maintain the integrity of the taxation system, reduce tax fraud and evasion, and protect consumers by ensuring that those employed or used by tax practitioners have the appropriate ethical and professional attributes to be engaged in the tax profession.
When do the Disqualified Entity requirements apply for new registrants and those renewing their registration?
Code items 15 and 16 are part of the Code of Professional Conduct and apply to all registered tax practitioners in Australia from 1 January 2024. Transitional provisions applied to some arrangements until 31 December 2024.
How do I seek approval from the TPB to employ or use a disqualified entity to provide tax agent services on my behalf?
If you intend to employ or use (or continue to employ or use) a disqualified entity to provide tax agent services on your behalf, you must apply to the TPB for approval.
You must use our approved form which can accessed by logging in to My Profile. The application must be accompanied by the relevant information as specified on the form.
Before applying you should also ensure that the disqualified entity has provided their written consent to you to make an application for approval to the TPB. Written consent can be provided using the Disqualifying events declaration and consent form.
What transitional arrangements are in place to allow me to comply?
Transitional provisions have ceased on 31 December 2024 and these provisions applied to tax practitioners who employed or used a disqualified entity before 1 January 2024. For further information about the transitional provisions, refer to our Information sheets:
How long will my application for approval to use the services or employ a disqualified entity take?
The TPB will typically decide an application for approval within 60 days of receiving the complete application, or within a longer period if agreed between the TPB and registered tax practitioner.
What are my obligations if I employed a disqualified entity prior to 1 January 2024?
If you engaged a disqualified entity prior to 1 January 2024, you had 12 months (until 31 December 2024 (inclusive)) to either cease employing the disqualified entity to provide tax agent services, or obtain TPB approval to continue. For further information about your obligations, refer to our guidance.
What if I become a disqualified entity while I am engaged by a tax practitioner?
You must notify your employer (or the tax practitioner who uses your services) within 30 days after you become aware (or ought to be aware) that you are a disqualified entity.
Are there penalties for failing to comply with the new disqualified entities requirements?
If you are a registered tax practitioner and you do not comply with the disqualified entities requirements, you may be in breach of the Code of Professional Conduct. We may impose sanctions for the breach.
If you are a disqualified entity and you do not notify the tax practitioner who employs or uses your services that you are disqualified, you may be liable for civil penalties. Refer to the civil penalty provisions for further information.
Where can I get more information?
For further information, refer to:
- Code obligations when you employ, use or have an arrangement with a disqualified entity
- TPB Information Sheet 41/2024 Code of Professional Conduct - Employing or using a disqualified entity in the provision of tax agent services without approval
- TPB Information Sheet 42/2024 Code of Professional Conduct - Prohibition on providing tax agent services in connection with an arrangement with a disqualified entity
I can't load my documents in my application for approval.
Our application form has a combined file size limit of 20 MB, you’ll receive an error message if you attempt to attach files larger than the maximum size limit. We would suggest either trying to compress the file or save in a PDF format to reduce the size.
I can't add the disqualified entities overseas address in my application for approval.
We only accept Australian addresses.
Why is there a 'Disqualifying events declaration and consent form’ and an online application form?
The online form (available on My Profile) is the TPB’s application form for you to seek approval to employ or use a disqualified entity to provide tax agent services on your behalf. The Disqualifying events declaration and consent form is evidence of you having undertaken due diligence when engaging entities to provide tax agent services on your behalf. It also provides for a disqualified entity’s declaration of consent for you to seek the TPB's approval, and their notification in writing to you that they are a disqualified entity.
Last modified: 31 January 2025