TPB Chair addresses CPA Australia audience on breach reporting
CPA Australia welcomed the Chair of the Tax Practitioners Board (TPB), Mr Peter de Cure AM to its annual Public Practice Retreat in Lorne, Victoria this week.
New mandatory breach reporting requirements are causing some uncertainty for tax practitioners and Mr de Cure addressed an audience of more than 200 practitioners to share the TPB’s approach.
From 1 July 2024, the additional breach reporting obligations apply to registered tax practitioners under the Tax Agent Services Act 2009 (TASA) and require practitioners to report any “significant breaches” of the Code of Professional Conduct that relate to their conduct, or that of other registered practitioners, to the TPB.
The new mandatory reporting rules have raised questions on how they would work in practice, such as what would constitute a “significant breach” and the circumstances around when they would be required to report either themselves or other tax practitioners to the TPB and their professional associations.
The TPB has already announced it will take a “risk-based approach when deciding to commence a formal investigation, and that a preliminary analysis will be undertaken on all reports in the same way current complaints are investigated”.
Mr de Cure warned against practitioners making frivolous, vexatious or malicious claims against other practitioners, noting that such behaviour itself could go towards a breach of the Code.
He also explained that the TPB will be taking a transitional approach to enforcing compliance, focusing first on consultation, education and building awareness, and improving compliance, supervisory and regulatory systems.
CPA Australia members at the event noted the challenges they’re facing, including uncertainty about when and what to report, how the TPB will handle a report, and whistleblower protections.
CPA Australia spokesperson, Gavan Ord, said: “Practitioners have been taken by surprise by these last minute insertions into legislation and have genuine concerns about how they are supposed to adopt these changes, particularly when there are such serious consequences for non-compliance.
“CPA Australia members already comply with the Australian Professional and Ethical Standards (APES) which include standards on ethical obligations, non-compliance with laws and regulations (NoCLAR) and quality control for firms. These standards provide a solid foundation for tax practitioners to ensure strong governance and processes, with clear instructions on dealing with evidence of non-compliance.”
Across two days, the Public Practice Retreat gave CPA Australia members and other guests an opportunity to hear from leading industry experts on some of the key topics impacting the profession today, as well as in the future.
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