Tax agents play a crucial role in assisting businesses with their tax obligations, but what happens when they fail to meet the expected standards? Federal Tax Authority Decision No. 1 of 2024 introduces the concept of black points as a means of enforcing compliance among tax agents. Let’s delve into Article 3 of this decision to understand how black points are applied and their implications for tax agents:
Violation by Natural Person Tax Agent (Non-Juridical): If a violation occurs and the tax agent is a natural person not associated with a juridical entity, black points are applied to that individual.
Violation by Natural Person Tax Agent (Juridical): When a natural person tax agent is employed by a juridical entity and a violation occurs, black points are assigned to both the individual tax agent and the juridical entity.
Violation by Representative of Juridical Person Tax Agent: If a violation affects or is related to the client represented by a juridical person tax agent, black points are attributed to both the natural person appointed to represent the client and the juridical entity itself.
Violation by Representative of Juridical Person Tax Agent (Not Client-Related): In cases where a violation does not relate to or affect the client represented by the juridical person tax agent, black points are solely applied to the juridical entity.
Implications and Procedures
Article 5 details the procedures and consequences based on the accumulation of black points. Here’s a summary:
Accumulated Points: Points are accumulated based on the severity and frequency of violations.
Notification and Warnings: Tax agents receive notifications and warnings as points accumulate, with precautionary measures advised.
Deregistration: Upon reaching a certain threshold of points, tax agents face deregistration, leading to removal from the register and associated consequences.
Conclusion
Black points serve as a mechanism to uphold professional standards among tax agents, ensuring compliance and accountability. Understanding how these points are applied, and their implications is essential for tax agents to maintain integrity and trust within the tax system
