50‑25 Employing or using the services of50‑25 Employing or using the services of deregistered entities

#### 50‑25 Employing or using the services of deregistered entities (1) You contravene this subsection if: (a) you are a \*registered tax agent or BAS agent; and (b) you employ or use the services of an entity to provide \*tax agent services on your behalf; and (c) you know, or ought reasonably to know, that: (i) the entity is not a registered tax agent or BAS agent but was previously a registered tax agent or BAS agent; and (ii) the entity’s registration was terminated within the period of 1 year before you first employed, or first used the services of, the entity. Civil penalty: (a) for an individual—250 penalty units; and (b) for a body corporate—1,250 penalty units. > Note: Subdivision 50‑C of this Act and Subdivision 298‑B of Schedule 1 to the Taxation Administration Act 1953 determine the procedure for obtaining a civil penalty order against you. (2) Subsection (1) does not apply if the entity’s registration was terminated: (a) because: (i) the entity surrendered their registration; or (ii) the entity became an undischarged bankrupt or went into external administration; or (b) because of a reason prescribed by the regulations. (3) Subsection (1) does not apply if: (a) the entity is a \*disqualified entity; and (b) the Board has given you approval under section 45‑5 to employ, or use the services of, the disqualified entity to provide \*tax agent services on your behalf.