Ministerial Determination Creates Uncertainty for Tax Agents: Professional Body
Ministerial Determination Creates Uncertainty for Tax Agents, Challenging for Tax Practitioners Board
A recent legislative instrument issued by Assistant Treasurer Stephen Jones has sparked concerns among professional bodies, particularly the Institute of Public Accountants (IPA), regarding the impact it will have on tax agents and the Tax Practitioners Board.
The Tax Agent Services (Code of Professional Conduct) Determination 2024 introduces eight new obligations that practitioners must adhere to, in addition to existing obligations under the Code. These new obligations are set to come into effect on 1 August 2024.
Despite feedback provided by professional accounting and tax practitioner bodies during the consultation process, many major concerns remain unaddressed in the final determination. One key issue raised by IPA general manager Tony Greco is the prescriptive nature of the new obligations, which may undermine the principles-based approach of the Code of Professional Conduct.
Greco expressed concerns about the potential duplication and overlap between existing Code obligations and the proposed new obligations. He also highlighted specific concerns about the obligation for practitioners to disclose confidential client information to the Australian Taxation Office (ATO) under certain circumstances.
The determination, which is the first use of new ministerial powers granted under recent legislation, has raised questions about the level of scrutiny and oversight involved in implementing additional obligations for tax practitioners. Greco noted that this is just one of several recent changes to ethical and professional conduct requirements for tax practitioners, including breach reporting obligations.
In response to the new obligations, the Chair of the Tax Practitioners Board, Peter de Cure, emphasized the importance of tax practitioners familiarizing themselves with the requirements and ensuring compliance. The TPB will be providing guidance on the new Code obligations in the coming weeks through a consultation process.
Overall, the introduction of these new obligations has created uncertainty and challenges for tax agents and the Tax Practitioners Board, with professional bodies and practitioners alike expressing concerns about the potential impact on their practices and interactions with clients and the tax system.