Six professional bodies representing tax and business activity statement agents have called on Prime Minister Anthony Albanese to step in and clarify the operation of new obligations in a revised code of conduct that will force them to disclose personal information to clients.
The Australian Bookkeepers Association, Chartered Accountants Australia and New Zealand (CAANZ), CPA Australia, Institute of Certified Bookkeepers, Institute of Financial Professionals Australia and National Tax and Accountants’ Association made the call in an open letter printed in The Australian Financial Review, The Australian and various metropolitan newspapers in reference to amendments to the Tax Agent Services (Code of Professional Conduct) Determination.
The letter stated that while the bodies supported reforms that strengthened the accounting profession, some of the new rules “overreach in a way that is deeply concerning”.
This refers to the obligations for tax practitioners to disclose to clients ‘any matter’ that may significantly influence a decision of the client to engage the practitioner and to publicise any investigations against them even if they are spurious or vexatious.
“Legal advice confirms these rules could force tax practitioners to share personal information, which could include their mental health, with their clients,” the letter stated, adding practitioners would be forced to make public investigations into any complaints against them, even if they were spurious or vexatious.
The bodies added that while they appreciated the willingness of Assistant Treasurer and Minister for Financial Services Stephen Jones to discuss amendments, with a meeting set to take place at the end of this week, they would take further action if no agreement was reached.
“We urge the Prime Minister to step in and stop this unfair attack on Australian businesses and their dedicated staff. Should the government fail to act, we are asking all senators to vote for the disallowance [motion] on 10 September,” they said.
Commenting on the letter, CAANZ chief executive Ainslie van Onselen said the determination was of concern because the obligations on practitioners were difficult to implement since they were broad and open to interpretation.
“While the profession is being told that guidance from the Tax Practitioners Board (TPB) will solve this confusion, our members know this guidance is no replacement for black-letter law,” van Onselen said.
“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.”
CPA Australia chief executive Chris Freeland added: “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.
“We are committed to nurturing our 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.”
