Tax Practitioners Board to Finalise Guidance on Contentious Determination

The Tax Practitioners Board is facing backlash from professional associations over a new determination that introduces ethical principles into Australia’s tax agent rules. The determination, which contains eight provisions, has sparked concerns about its impact on tax practitioners and their clients.

Treasury and TPB representatives recently met with representatives from 10 professional associations to discuss the details of the determination and the timeline for consultation on the new provisions. The meeting revealed that the determination aligns with principles outlined in the accounting profession’s Code of Ethics, but some associations still have reservations.

One contentious provision in the determination is the “dob in a client” rule, which requires tax practitioners to notify the ATO if a client refuses to correct misleading or incorrect information. While Treasury representatives clarified that this rule only applies in specific circumstances, concerns remain about its implications for client confidentiality.

Another new obligation requires tax practitioners to disclose details to clients that may influence their decision to engage a tax agent. This rule aims to ensure transparency and informed decision-making, but some associations argue that it is too broad and could create unnecessary burdens for practitioners.

Despite the concerns raised by professional associations, the TPB has set a November deadline to finalize guidance on the new provisions. The release of draft and final guidance will be accompanied by information on the TPB website, webinars, and other communication products to help practitioners understand and comply with the changes.

Greens Senator Barbara Pocock has been vocal about the need for consultation and transparency in the development of the new code. She emphasized the importance of reporting wrongdoing and holding tax advisors accountable for their actions.

Assistant Treasurer Stephen Jones has yet to address the concerns raised by professional associations or consider a different effective date for the new requirements. The industry awaits further updates on the implementation of the determination and its potential impact on tax practitioners and their clients.