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The digital platform will support compliance with new TASA code obligations requiring practitioners to report clients who make false or misleading statements.
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ATO to launch dob-in tool for tax agents to report clients
11 December 2024
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The ATO will set up a digital channel for tax agents to dob-in clients who fail to correct false or misleading statements, a key requirement of upcoming changes to the TASA code of conduct.
The digital channel would be the first of many “solutions” rolled out to help agents comply with their new obligations, the Tax Office said in a statement on Tuesday.
“While the code is administered by the TPB, there are elements where practitioners will need to engage with us to discharge their code obligations,” the ATO said.
“We are currently developing solutions for those elements as a matter of priority and will be rolling them out progressively, as they become available.”
The changes affecting practitioners’ disclosure, confidentiality and record-keeping obligations under the TASA were introduced by a determination made by Assistant Treasurer Stephen Jones in the middle of the year.
The code obligations are set to take effect on 1 January for firms with 100 or more employees, and on 1 July for practitioners with less than 100 employees.
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The ATO said its first course of action was ensuring an appropriate digital process for agents to comply with section 15 of the determination, dubbed the “dob-in” obligation by agents.
The section requires agents to advise clients to correct false statements and, in some cases, notify the ATO or Tax Practitioners’ Board if the client fails to act.
“We are currently identifying an existing digital channel that can be used by tax practitioners to notify us that will ensure the security and appropriate treatment of the information you provide,” the ATO said.
“In the new year, we will provide more details about how to make a notification, your obligations from an ATO perspective, and how we intend to use the information once we receive it.”
Section 15 was amended in September to introduce a higher threshold before forcing agents to report clients following concerns about it going against existing confidentiality obligations.
According to the redrafted determination, agents must take steps to notify the ATO or TPB where statements showed a reckless or intentional disregard for tax laws and they had reasonable grounds to believe their “client’s actions have caused, are causing, or may still cause, substantial harm to the interests of others”.
Meanwhile, the industry will also be waiting on finalised TPB guidance on the changes to address unsettled issues with the TASA determination.
In October, the TPB released a set of six draft information sheets for industry feedback.
“This draft guidance supports trust in the tax profession, covering a range of practical issues to ensure competent services, supported by quality management systems and improved client transparency,” TPB chair Peter de Cure said.
The TPB said it expected to release finalised guidance to agents in December.
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