The Australian Government recognises the vital role that tax practitioners play and is committed to working with them to strengthen integrity and accountability in the tax system.
The 2019 independent review into the effectiveness of the TPB and the Tax Agent Services Act 2009 (TASA) called for reforms to address the cultural issues within the tax profession. The PwC tax leaks scandal exposed the consequences of the weaknesses this review identified.
Tax Agent Services (Code of Professional Conduct) Determination 2024 will introduce eight additional obligations to supplement the existing Code of Professional Conduct and strengthen integrity and accountability in the tax profession. All eight obligations were included in the exposure draft consultation. These modest obligations will:
- reinforce existing prohibitions on false and misleading statements
- require tax practitioners to disclose to clients significant matters such as prior convictions for tax offences
- manage conflicts of interests
- maintain confidentiality, and
- ensure that services are being provided competently.
Consistent with our approach to progressing the Government's comprehensive response to the PwC tax leaks scandal we are engaging closely and constructively with all stakeholders.
A transitional period for implementing the new Code of Professional Conduct was always intended to allow Tax Practitioners to understand and implement the new obligations. The TPB detailed this in its public statements, but to provide certainty for industry the Government will codify the transitional approach in the Determination and finalise the development of guidance for practitioners.
The Government will insert a transitional rule into the Determination that will provide firms with 100 employees or less until 1 July 2025 and larger firms with 101 employees or more until 1 January 2025 to bring themselves into compliance with these new obligations, so long as they continue to take genuine steps towards compliance during this period.
The Tax Practitioners Board has publicly issued the timeline (TPB Communique) for the development and consultation on guidance to support the code, to be finalised by November this year.
