Chartered Accountants Australia and New Zealand (CA ANZ) and other professional bodies (collectively the Joint Bodies) have written to the Assistant Treasurer, The Hon. Stephen Jones MP, to express strong concerns about the construct and implications of Tax Agent Services (Code of Professional Conduct) Determination 2024 (the LI).

The LI imposes additional obligations on registered tax and BAS agents (tax practitioners) under the Code of Professional Conduct (Code) in section 30-10 of the Tax Agent Services Act 2009 (TASA).

The Joint Bodies’ primary concerns include the following aspects of the LI:

• Keeping clients informed of all relevant matters - Our members are very concerned about the obligation to keep their current and prospective clients informed of ‘any’ matter that could significantly influence a decision of a client to engage them. Clarification is required to ensure the scope of section 45 of the LI excludes matters unrelated to a tax practitioner’s ability to provide tax agent services as a fit and proper person.
• Retrospectivity - Tax practitioners need to consider matters as far back as 1 July 2022 to determine if these need to be disclosed to their current and prospective clients. Notwithstanding the transitional provision in section 151, the retrospective nature of the LI and the commencement date of 1 August 2024 places a significantly onerous and impracticable requirement on tax practitioners.
• Confidentiality - The LI imposes for the first time a positive duty on tax practitioners to notify the ATO of a material false, incorrect, or misleading statement where it was prepared by the practitioner, if the client does not agree to correct it. This appears to operate inconsistently with Code item 6 obligation not to disclose confidential client information without the client’s permission, unless under a legal duty to do so.
• Start date - The Joint Bodies are concerned the LI’s commencement date of 1 August 2024 is unrealistic and unachievable for many tax practitioners who are already operating under heavy workloads to assist their clients and ensure tax revenue is correctly calculated and paid.

We request the Minister withdraw the LI as registered, and conduct further targeted consultation on the LI to ensure that the new measures can be fairly implemented and that there are no unintended consequences for tax practitioners or the regulator, the Tax Practitioners Board (TPB).