Application of Black Points System to Tax Agents
Date of Publication: 13 May 2024
Effective 1 July 2024, a new system will be implemented to penalize tax agents for professional misconduct, where points will be accumulated in accordance with the severity and frequency of violations.
Application of Black Points to Tax Agents
Where Tax Agents violate the professional standards, black points shall
be applied as follows:
|
Violation committed by: |
Black Points shall be applied to: |
|
Natural Person Tax Agent (NPTA) who does not work for Juridical Person Tax Agent (JPTA) |
NPTA |
|
NPTA who works for JPTA |
Both NPTA and JPTA |
|
Representative of JPTA where violation is affecting the client represented by JPTA |
Both the appointed NPTA and JPTA |
|
Representative of JPTA where violation is not affecting the client represented by JPTA |
JPTA |
Accumulation of Points and Consequences
|
Accumulated Points |
Consequences |
|
NPTA – up to 75 points JPTA – up to 75 x (the number of NPTA working for the JPTA) points |
Notification of the violations, black points, and the need to take precautionary measures |
|
NPTA – up to 149 points JPTA – up to 149 x (the number of NPTA working for the JPTA) points |
First Warning |
|
NPTA – up to 199 points JPTA – up to 199 x (the number of NPTA working for the JPTA) points |
Second Warning |
|
NPTA – up to 199 points JPTA – up to 199 x (the number of NPTA working for the JPTA) points |
Deregistration |
Key Take Aways
- Appointing the right tax agent is critical to properly meet tax obligations, and exercise tax rights.
- Taxpayers shall ensure to appoint tax agents who maintain professionalism and integrity.
