Chartered Accountants Australia and New Zealand (CA ANZ) has welcomed the Coalition’s pledge to seek disallowance of the recently tabled Tax Agent Services (Code of Professional Conduct) Determination 2024 which, as it stands, unduly impacts smaller tax practitioners.
CA ANZ has been strongly advocating for the Determination to be withdrawn and re-written to allow for major areas of concern for our members to be addressed.
CEO Ainslie van Onselen and Group Executive for Advocacy Simon Grant are in Canberra this week, explaining directly to decision-makers our deep concerns about the new obligations being imposed on registered tax and BAS agents.
“We have been in regular contact with the Assistant Treasurer’s office to make it clear that while we support the intent of the reforms, aspects of the Determination – in particular sections 15 and 45 need to be changed,” said Ainslie van Onselen, CEO of CA ANZ.
“It was disappointing to see the Determination tabled in the Senate yesterday, even though the profession’s major concerns haven’t been addressed.”
There is now a small window for Senators to disallow the Determination that was tabled on Monday.
“We have come to Canberra to ensure that key decision-makers understand the burden that has been placed on registered tax and BAS agents. The Determination contains new provisions that have not been subject to consultation while the obligations also disproportionally impact smaller practices,” said Ms van Onselen.
“We’re asking Senate crossbenchers to support any disallowance motion in the Senate, or for the Government to withdraw the determination so it can be re-written following more effective consultation.
“Section 45, for example, requires tax professionals to advise all current and prospective clients of ‘any matter’ dating back to 1 July 2022, that could ‘significantly influence’ a decision of a client to engage with them, but there is no clarity regarding what ‘any matter’ must cover.
“The obligation to disclose private information, such as investigations and health conditions which may affect an agent’s ability to provide services, has not been examined according to the Statement of Human Rights that accompanied the Determination.
“It is imperative that the human rights implications of these important new obligations be properly considered and ideally that the obligations be clarified through re-drafting.
“CA ANZ is deeply concerned that these new obligations will disincentivise our members seeking mental health help if they need it – fearful a diagnosis could trigger disclosure rules and hurt their business.
“I have spoken with Professor Patrick McGorry AO, psychiatrist and leading mental health advocate, and he supports CA ANZ’s call for clarification in the Determination that tax agents should not be required to disclose their mental health status.
“While the Chair of the Tax Practitioners Board (TPB) has sent mixed messages about whether the requirement to disclose mental health matters is something that would be clarified via TPB guidance, it is important to remember that guidance does not overrule law, and the TPB cannot amend regulation through its guidance.
“Leaving such an important matter to the administrators of this regulation is not appropriate; courts will look to the wording of the legislative instrument, not the interpretation by the TPB.
“Furthermore, there has been no consultation about the insertion of a new legal obligation requiring tax professionals to ‘dob in’ clients where there has been a refusal to correct a materially false, misleading or incorrect statement. CA ANZ has grave concerns about the impact that this new legal obligation will have on the integrity of the tax system.
“Businesses, particularly smaller ones, rely on their tax agent to help guide them through the complexity of business laws. This relationship is one of trust. This provision, as it stands, discourages clients from having frank and open discussions with tax practitioners and could worsen tax compliance.
“CA ANZ supports the Government’s intention to close regulatory gaps, drive cultural change, and to play its part in decreasing the chance of a repeat of misconduct which has been the subject of wide scrutiny in recent times. But we must get the changes right,” said Ms van Onselen.
ENDS
About Chartered Accountants Australia and New Zealand
Chartered Accountants Australia and New Zealand represents more than 139,000 financial professionals, supporting them to make a difference to the businesses, organisations and communities in which they work and live. Chartered Accountants are known as Difference Makers. The depth and breadth of their expertise helps them to see the big picture and chart the best course of action.
www.charteredaccountantsanz.com
For more information contact:
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Gillian Bowen, Public Affairs Manager M +61 411 485 421 gillian.bowen@charteredaccountantsanz.com
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