Australia´s New Code to Enhance Professional Standards for Tax Practitioners

| Picture: "Parliament House, Perth, Western Australia" by Nachoman-au is licensed under CC BY-SA 3.0.

The Australian Government has expanded the obligations outlined in the Australian Code of Professional Conduct for tax practitioners.

This initiative is part of a broader effort to strengthen regulatory oversight, particularly in light of the recent PWC Australia scandal. It aims to tackle emerging risks associated with tax practitioner behavior and practices. 

The move is consistent with the Australian Government's commitment, announced in August 2023, to crack down on misconduct and restore public confidence in the tax system.

IMPLEMENTATION OF NEW OBLIGATIONS

Effective August 1, 2024, tax practitioners in Australia are required to comply with additional obligations. These new requirements are designed to supplement the existing standards within the Code of Professional Conduct and to enhance public trust in the tax profession. Key areas covered by these new obligations include:

Honesty And Integrity

• Tax practitioners must uphold and promote ethical standards within the tax profession.

• They must avoid making false or misleading statements.

Independence

• Practitioners must manage conflicts of interest, especially in dealings with government bodies.

• They must ensure confidentiality is maintained.

Confidentiality

• Practitioners must maintain confidentiality in all interactions with government entities.

• They must manage client information with the utmost discretion.

Competence and Record-Keeping

• Practitioners are required to maintain accurate and comprehensive client records.

• They must ensure that tax agent services provided under their supervision are done competently.

Other Responsibilities

• Implementing quality management systems to ensure high standards in service delivery.

• Keeping clients informed of all relevant matters concerning their tax affairs.

STATEMENTS FROM THE TAX PRACTITIONERS BOARD

Peter de Cure AM, Chair of the Australian Tax Practitioners Board (TPB), emphasized the importance of these new obligations. He stated, "The eight additional obligations align with the existing principles of the Code, which include honesty, integrity, independence, confidentiality, and competence. Australian tax practitioners should familiarize themselves with these new requirements and review their practices to ensure compliance."

He added, "While many Australian tax practitioners will already be meeting the new standards, those who do not will need to quickly implement appropriate controls and arrangements within their practices to comply with these new obligations."

NEXT STEPS AND GUIDANCE

The TPB plans to release draft guidance on the new Code obligations. This will provide tax practitioners with a clearer understanding of the new requirements and help them prepare for compliance by the implementation date.

COMMITMENT TO HIGH STANDARDS

This initiative demonstrates the Australian Government's ongoing commitment to maintaining high professional standards within the tax sector, safeguarding public trust, and ensuring the integrity of the tax system. 

SOURCE/ RECOMMENDED READ: 

• https://www.legislation.gov.au/F2024L00849/latest/text

• https://www.tpb.gov.au/new-code-determination-lifts-professional-standards-tax-practitioners

• https://www.legislation.gov.au/F2024L00849/latest/text/explanatory-statement