Kerrie Green’s Post

The IPA is working with the joint professional bodies to address member concerns about the Tax Agent Services (Code of Professional Conduct) Determination 2024 legislative instrument. The copy of the letter sent to Assistant Treasurer and Minister for Financial Services the Hon Stephen Jones MP is now available on the IPA website. In the letter, the IPA calls for Assistant Treasurer Jones to provide more time to address the concerns raised about the determination as registered to ensure that the new measures can be implemented appropriately without unintended consequences for tax practitioners. - The IPA has asked for consideration regarding: - Section 45 - Keeping clients informed of all relevant matters, - Section 151 - Retrospectivity, - Confidentiality (Subsection 15 (2)), - 1 August 2024 Start Date. The IPA first raised concerns about the changes to the Code of Professional Conduct in January this year in a joint submission to Assistant Treasurer Jones, to provide more clarity around the intent of the legislative instrument because tax professionals rely on the code for their daily operations. Read the recent join submission ' Tax Agent Services (Code of Professional Conduct) Determination 2024' here: https://ow.ly/INtI50SC0cO

The IPA is actively collaborating with joint professional bodies to address member concerns regarding the Tax Agent Services Determination 2024 Read the full joint submission below #TaxProfessionals #IPA #ProfessionalConduct #LegislationUpdate

Following a short but intense final stage consultation period, the Tax Agent Services (Code of Professional Conduct) Amendment (Measures No. 2) Determination 2024 has been registered. The legislative instrument amends the Tax Agent Services (Code of Professional Conduct) Determination 2024 (the Determination), registered in July. While not perfect, the amendments represent a pragmatic outcome and should have limited impact on our tax practitioner members. Section 15 has been modified to further address our concerns, while section 45 has been completely revised, providing tax practitioners a clear list of issues that need to be disclosed when applicable. Large parts of the Determination’s obligations should be familiar to our members as they are drawn from the APESB Standards, particularly APES 110. Members are already required to be compliant with the APESB Standards and should be a long way down the track in compliance with these new obligations. We acknowledge the joint effort of all the major professional bodies in achieving this outcome. We also acknowledge the hard work and dedication of the Assistant Treasurer’s staff who worked collaboratively with the joint bodies to develop amendments to the Determination. We now look forward to working in the same collaborative manner with the Tax Practitioners Board to develop guidance providing clarity and certainty around the new obligations. We do note that the prolonged and arduous process to get the Determination to its current state highlights the risk of amending the Code of Professional Conduct by way of legislative instrument, as pointed out in our joint submission to the 2022 Treasury Consultation.

  Important changes to the Tax Agent Services Act 2009 (Cth), and Professional Code of Conduct include breach self-reporting by tax agents, reporting of other tax practitioners, and disclosure of client information required by law. What are the recent changes to Tax Agent Services Act 2009 (Cth) and the Code of Professional Conduct that have occurred as a consequence of the government's response to the so-called PwC-affair? Find out in this comprehensive BenchTV presentation with Arthur Athanasiou (Partner, Thomson Geer, Melbourne) and Keira Tweedie (Lawyer, Thomson Geer. Melbourne) where they cover:   Background to the changes to the Tax Agent Services Act 2009 (Cth) and the Code of Professional Conduct, including the James Report, the Treasury Laws Amendment (2023 Measures No 1) Act 2023 (Cth) and the subsequent lack of consultation with key stakeholders Upholding the ethical standards of the tax profession False or misleading statements Conflicts of interest in dealing with government Maintaining confidentiality Ensuring competent tax agent services Quality Management Systems Keeping Clients Informed   This special presentation can be purchased by non-subscribers for $49.00 incl. GST here: https://lnkd.in/gQJ4NRYr Subscribers can watch the full video here: https://lnkd.in/gvKVWnAb   If you wish to subscribe to Continuing Professional Development you can do so here: https://lnkd.in/ggp9Q5p

The Assistant Treasurer Stephen Jones has registered the Tax Agent Services (Code of Professional Conduct) Amendment (Measures No. 2) Determination 2024. This was released in draft form last week setting out certain changes from the original Determination, particularly around section 15 (the ‘dob in’ provision) and section 45 (keeping clients informed). The draft Determination only had a one-week consultation period, with NTAA and other professional associations providing joint comments back to Treasury on certain aspects. Although sections 15 and 45 are still there, they have been significantly improved from the original Determination. If administered as intended, a registered practitioner will now only be required to ‘dob in’ a client in the most egregious circumstances where the client’s actions provide substantial harm to the interests of others. Although the wording around this obligation may be difficult to navigate, it is hopeful the changes mean that most practitioners will not have to consider this. Also, the original section 45 has been replaced with a finite number of clear-cut circumstances that a practitioner needs to notify an existing or prospective client. The baton has now been passed to the Tax Practitioners Board (‘TPB’) to provide further guidance on how these Code items will be administered, including defining relevant terms. NTAA looks forward to working with the TPB to ensure any guidance is implemented in a practical and common-sense manner.

The ATO has released the R&D Tax Transparency reports, disclosing certain information on R&D claims for the year ended 30 June 2022. Our team has prepared the below article outlining the purpose of these reports and key takeaways from the disclosed data. #ATO #R&D #TaxTransparency #DataInsights

The TPB recently released proposed guidance to assist registered tax agents understand their responsibilities under the TPB's new 'breach' reporting obligations. One significant issue the TPB and Federal Government appears not have taken into consideration in drafting these provisions is the fact that the vast majority of people working in the 'Big 4' tax practices are not registered tax agents, including people actually working in the tax division. While some Tax Partners might be registered with the TPB, some aren't. Partners who are legal practitioners can provide tax advice without being registered with the TPB. From my own experience, I have worked in a team of 25 people, where the only person registered with the TPB was the Partner. As the proposed new TPB breach reporting obligations only apply to registered tax agents in relation to either their own conduct or the conduct of another registered tax practitioner, it's likely the only people the new TPB breach reporting obligations apply to are the Partners in the 'Big 4' firms. Partners being obligated to report their own breaches and that of other Partners in their firm. I hope I'm wrong, but I'm just not sure the proposed new breach reporting obligations are going to achieve what the TPB and Federal Government are hoping to achieve. What are your thoughts? #tpb

Essential tax compliance for limited companies. Managing a limited company requires meticulous attention to regulatory obligations, particularly with regard to tax and accounting. Our guide delves into the intricacies of these obligations, offering a comprehensive overview to help ensure your company remains in good standing... #taxcompliance #taxadvice #limitedcompanies #companydirectors #guidance #businessadvisors #taxadvisors #heretohelpyou https://shorturl.at/kqAY6

Should your tax agent or another agent dob you in for non-compliance to the Tax Office? Is it a breach of confidentiality? Commencing 1st July 2024 tax agents are retrospectively mandated to dob in their clients for non-compliance on their tax returns e.g. employee v contractor obligations.See https://lnkd.in/gyDSeVsD. The concern about confidentiality arises from the new requirement in Subsection 15(2) of the Determination, which mandates accountants to report clients to the Australian Taxation Office (ATO) if they do not correct materially false, incorrect, or misleading statements within a reasonable time. This raises questions about when the obligation to maintain client confidentiality is overridden by the obligation to report to the ATO. The Chartered Accountants Australia and New Zealand (CA ANZ) has highlighted this issue, emphasising the need for clarity on balancing confidentiality with the new reporting requirement. CAANZ members are being asked to lobby the government for change. Maybe a similar template letter for taxpayers for their clients may assist in seeking clarity. The CAANZ member template letter states to politicians: "Confidentiality Subsection 15(2) of the Determination will require me to report my client to the Australian Taxation Office (ATO) if they do not correct a materially false, incorrect or misleading statement that I prepared, within a reasonable time. I am concerned about the impact of this new requirement in the situation where I have become aware of a material error or omission in my client’s tax return/activity statement. Normally, I would inform my client of the material issue, take steps to amend the tax return/activity statement and send it to my client for approval to lodge with the ATO.   However, if I do not receive consent from my client to lodge an amended tax return/activity statement after a period of time, I am uncertain as to when my obligation to keep the confidentiality of my client’s information is overridden by this new obligation to report my client to the ATO if they do not consent within a reasonable time. I am concerned that if I notify the ATO too soon, I will breach my confidentiality obligations. I also have to determine whether the issue is material, but it seems that if I disclose and it is not material, I will also be in breach of my confidentiality obligations. There could be further ramifications for my client and me if, for example, I notify the ATO about the material error or omission before the client completes a voluntary disclosure to the ATO (the client may have engaged another tax practitioner to do this for them)" Thanks CAANZ for raising awareness to all tax agents and tax payers. Source: https://lnkd.in/eUB6bu3C

Response to PwC – Tax Practitioners Board registration review The next iteration begins. Treasury are now moving onto a review of the eligibility requirements for tax practitioner registration with the Tax Practitioners Board. Consultation is open until 7 August 2024 and during this time those interested can put in an EOI to attend virtual roundtable discussions. The consultation paper explores the following areas of improvement for registration pathways:  - strengthening company and partnership registration eligibility requirements - reviewing the professional association 'recognition’ and registration pathways - broadening the TPB’s ability to accept alternative forms of ‘relevant experience’. #TPB #taxpractitioners #tax #TASA #registration https://lnkd.in/gzKtnBqm