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Various accounting bodies have called for amendments to be made to the Tax Agent Services Determination ahead of a meeting with the Assistant Treasurer.
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Accounting bodies demand action on code changes in letter to PM
05 September 2024
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CA ANZ and CPA Australia have published an open letter to the government ahead of a roundtable with the Assistant Treasurer’s office where the bodies will continue to advocate changes to the Tax Agent Services Determination.
The peak bodies representing tax and BAS agents said in the letter that the government’s rules are an “overreach.”
The open letter noted that legal advice received by the bodies had confirmed the rule could force tax and BAS agents to share personal information, including their mental health with their clients.
The bodies said the rules “could also deny a person the right to natural justice by forcing them to publicise investigations against them no matter how spurious or vexatious.”
CA ANZ CEO Ainslie van Onselen said CA ANZ has expressed the concerns of members to the Assistant Treasurer’s office since the determination was tabled in July.
Van Onselen said the organisation has also provided alternative wording to the determination.
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“When it was suggested our members’ fears were ‘unfounded’, we shared with the Assistant Treasurer legal advice we obtained to validate their concerns,” she said.
“Many of our members have also written to their local parliamentary member explaining why the rules are not only unfair but incredibly difficult to implement because they are so broad and open to interpretation.”
Van Onselen said the industry has been assured that any confusion would be solved by the Tax Practitioners Board; however, members know “this guidance is no replacement for black letter law.”
“They can already see that the TPB is grappling with the interpretation of the Determination as it is currently written, evidenced by the numerous updates to their website,” she said.
The joint bodies said the decision to write the open letter was not taken lightly.
Together, CA ANZ and CPA Australia said they firmly support and advocate reforms that strengthen the accounting profession, but the government’s new rules overreach in a way that is “deeply concerning.”
The professional bodies believe the amendments would not only impact nearly 72,000 tax professionals, but millions of Australians and small businesses, too.
CPA Australia CEO Chris Freeland said the rules are causing real concern for professionals who already operate in an environment of significant scrutiny and regulatory burden.
“Our decision to run the open letter underscores our deep concerns with certain aspects of these rules and the impact they will have on our members and the profession more broadly,” he said.
“We are particularly concerned about section 45 of the Determination which requires tax practitioners to disclose to clients ‘any matter’ which may significantly influence a decision of the client to engage the practitioner.
“In real terms, this may mean sharing irrelevant personal information with clients.”
Freeland said despite the letter, the joint bodies remain committed to nurturing the relationships with government, parliamentarians, and government agencies.
“While our decision to vocally express our concerns through the media is unusual, the unfairness of some aspects of these rules justifies our strong stance,” Freeland said.
CA ANZ and CPA Australia have asked all senators to support a disallowance motion in the Senate on 10 September if the upcoming roundtable cannot determine a suitable path forward.
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