The Tax Practitioners Board (TPB) has released a new guidance statement as it seeks to support the responsible adoption of artificial intelligence (AI) by tax practitioners.
The motivation for the initiative has been recognition of the growing role and importance of AI in the tax profession.
The guidance statement is designed to help tax practitioners understand how their existing obligations under the Code of Professional Conduct apply when using the technology in their practice.
“AI has the potential to increase productivity, drive efficiencies and enhance client service across the tax profession when used appropriately,” TPB chair Peter de Cure noted.
“We want to support tax practitioners in embracing the benefits of AI with confidence, while continuing to meet the high professional and ethical standards set out in the code.”
The statement highlights key considerations, including competence, reasonable care, confidentiality, record-keeping, professional judgment, and appropriate supervision and control.
For example, with regards to confidentiality, the statement reminds practitioners code item 6 states: “Unless you have a legal duty to do so, you must not disclose any information relating to a client’s affairs to a third party without your client’s permission.”
This means, in the context of AI in the provision of tax agent services, “tax practitioners must obtain permission from each client prior to divulging client information to a third party (which can include entering client information into AI models and tools, depending on how these tools are configured and used)”.
The guidance stresses AI should be used as a supporting tool and not replace professional judgment, given tax practitioners will remain accountable for the services they provide.
Another key consideration recognised for tax practitioners is their responsibility to “understand the capabilities and limitations of AI tools”, while also ensuring AI outputs are assessed and supplemented by professional judgment.
