The government has amended legislation to guide registered tax practitioners, including the mandatory reporting to the Tax Commissioner of any material errors that have not been corrected.

The government has made a number of amendments to the Tax Agents Services Act, 2009 which imposes additional requirements for registered tax practitioners.

Reforms were implemented in response to recommendations made by a Senate inquiry into the actions taken by the accounting firm PwC, and the consulting industry generally in Australia. 

An inquiry was initiated when a former PwC Partner, who is now retired, shared confidential information he had obtained from Treasury consultations as well as through his involvement with the Board of Taxation. 

The Partner, despite having signed several confidentiality agreements, intentionally shared confidential information with PwC Partners and others in Australia as well as overseas to help existing and potential clients avoid proposed anti-avoidance laws. According to the Senate inquiry, the scandal could have put $180 million per year in tax revenue at risk and brought in new income for PwC of $2.5 million or more.

The scandal exposed a number of deficiencies and flaws in the regulation of tax practitioners’ services, the investigative power of the Tax Practitioners Board, and the ability of government departments to share information.

We are now required to inform clients that: the registration of tax practitioners is up-to-date; how to access the complaints procedure for registered practitioners and our obligation to report uncorrected material errors and omissions.

Tax practitioner registration

The TPB is responsible for registering and regulating tax practitioners in Australia. Only licensed practitioners are allowed to provide customers with tax or BAS service. Customers can check the public register here: https://www.tpb.gov.au/public-register

Correction of errors and omissions

It is against the law to make a false, inaccurate or misleading statement to a tax commissioner or another government agency, even if the tax practitioners are aware of it.

Tax practitioners are required to correct the mistakes they have made.

Tax practitioners are required to notify the tax commissioner if the incorrect statement is not corrected.

Concerned?

Please contact Bates Cosgrave if you have any questions or concerns about these changes.