A registered tax practitioner will have complied with the taxation laws in the conduct of their personal affairs (Code item 2) if they have paid their tax debts by the due date or have entered into, and are complying with a formal payment arrangement with the ATO to pay their tax debt by instalments. However, you are still required to declare this arrangement when you renew your registration.

If you are working for a tax practitioner entity, such as a partnership or company where you are a partner, public officer, director or hold some other form of role or duty, you may have obligations under taxations laws. However, in a more traditional sense, if you're simply an employee or contractor of an entity, it may not affect your registration. 

If you receive a notice from us, it is important to take immediate action as we will now be taking firmer action against tax practitioners who fail to meet the high standards of professional conduct and trust. 

Tax practitioners who are found to have outstanding tax obligations may be cautioned or issued an order in the first instance, however if they do not rectify the situation and comply with their tax obligations, we may impose further sanctions. This can include a suspension or termination of registration. 

Importantly, a tax practitioner's failure to address outstanding tax obligations may also impact an applicant's eligibility for registration or renewal. 

Generally, an individual director or partner is not liable for the specific conduct of an offending director or partner. However, if that person knows of the misconduct or improper or unprofessional conduct of the director or partner and fails to take any steps to address the issues caused by them, this failure may be considered to reflect adversely on their own fitness and propriety.

You must ensure that you comply with your personal tax obligations, including those of your associated entities. Code item 2 requires a registered tax practitioner to comply with the taxation laws in the conduct of their personal affairs. This includes the affairs of all associated entities of a registered tax practitioner and any entity the registered tax practitioner has direct or indirect control over, particularly in circumstances where the tax practitioner is responsible for and/or actively involved in the tax affairs of the entity. A failure to comply with Code item 2 may also have implications for the tax practitioner regarding their overall fitness and propriety to be a registered tax practitioner. This is considered on a case-by-case basis and depends on the facts and circumstances of a case.

We may terminate the registration of a tax practitioner if the TPB is satisfied that a tax practitioner no longer meets the ‘fit and proper person’ requirement for registration. We may also determine a period (of no more than 5 years) during which the tax practitioner may not apply for registration. The primary purpose of imposing a non-application period is to protect the public and the integrity of the tax profession.