Date posted: 13/10/2022
Submission on four draft guidance documents issued by TPB
A joint submission with CPA Australia, Chartered Accountants Australia and New Zealand (CA ANZ), the National Tax and Accountants’ Association (NTAA) and the SMSF Association (SMSFA) in response to four draft guidance documents issued for public consultation by the Tax Practitioners Board (TPB)
In brief
- We support the form and wording of the three new and one updated draft guidance papers, and we note that examples are practical and clear.
- We suggest that the TPB consider the interaction between the TASA/registered practitioners, and advice on state taxes.
- We note that digitalized services provided by DSPs that are not currently covered by TASA should be monitored by the TPB and considered for future regulatory reform to ensure that consumer protections are well maintained as the environment evolves.
Chartered Accountants Australia and New Zealand (CA ANZ), CPA Australia, the National Tax and Accountants’ Association (NTAA) and the SMSF Association have made a joint submission in response to the four draft guidance documents issued for public consultation by the Tax Practitioners Board (TPB). Key points made in the joint submission are:
- The TPB’s draft guidance provides tax practitioners and those potentially providing tax or BAS agent services with greater clarity of the TPB’s interpretation of sections 90-5 and 90-10 of the Tax Agent Services Act 2009 (TASA).
- We support the proposed form and wording of Exposure Draft TPB Information Sheet TPB(I) D48/2022 - What is a tax agent service? (TPB(I) D48/2022) and Exposure Draft TPB Information Sheet TPB(I) D47/2022 - What is a BAS service? (TPB(I) D47/2022). However, we identify one salary sacrificing matter for clarification, and suggest that the guidance clarify that providing advice on state taxes is not a tax agent or BAS agent service and explain the restriction of the TASA to federal taxation laws and the interaction with the Code of Conduct.
- We also support the form and wording of Exposure Draft TPB Information Sheet TPB(I) D49/2022 - What is a fee or other reward?
- Overall, we consider the three new and one updated exposure draft information sheets and examples are practical and clear.
- We note that the new paragraph in the updated Exposure Draft TPB Information Sheet TPB(I) D50/2022 - Code of Professional Conduct – Confidentiality of client information (TPB(I) D50/2022) is particularly helpful. It states that “a disclosure that is contrary to a law or regulation, such as Code item 6, is not required or permitted under the NOCLAR framework”. The examples are also useful in highlighting that the whistleblower protections ensure that a tax practitioner will not be subject to any findings or sanctions under the TASA, specifically Code item 6, for disclosing confidential information to the Commissioner.
- We note that digitalized services provided by digital service providers (DSPs) that are not currently covered by TASA should be monitored by the TPB and considered for future regulatory reform to ensure that consumer protections are well maintained as the environment evolves.
