Tax Practitioners Board

Question: Discuss about the Tax Practitioners Board. Answer: Introduction The tax agents tend to perform a vital service with regards to the interpretation of the complex Australian tax system and ensure that the tax returns are filed in an accurate and timely manner. Like other professional services which are regulated, these agents are also regulated by the TPB (Tax Practitioners Board). In this regard, TASA (Tax Agent Services Act 2009) and Code of Professional Conduct are critical regulatory frameworks adopted by TPB which by virtue of mandatory registration with the board is applicable on the tax agents as well. Code of Profession conduct lists down relevant professional standards along with ethical conduct that tax agents are expected to comply by when providing services to clients. This code includes provisions related to ensuring that the agent acts with integrity and honesty, acting of the agent in an independent manner and thereby offer correct advice to the client without any adverse influence, safeguarding the confidentiality of client under all circumstances, acting and care while displaying competence in relation to the services offered. Clearly, adherence to these rules would act as a key enabler for the industry growth and maintenance of service standards which in the long term would enhance the customer satisfaction (TPB, 2010). In the event of any breach on the part of the tax agents with regards to any of the principles highlighted in the code, TPB in accordance with TASA has the following options (TPB, 2010). Sanctions may be imposed for breaching of the code by the tax agent. Civil penalty may be imposed in case of breach of provisions in the code that invoke provisions related to penalty of civil nature. If the TPB is of the opinion that the given tax agent is no longer fit too offer services, the respective registration of the tax agent would be terminated and thus the tax agent would no longer be able to offer services. Examples of case laws Jack v Tax Agents Board of New South Wales [1997] AATA 678 Su and Tax Agents Board of South Australia [1982] AATA 127 Toohey and Tax Agents Board [2009] AATA 142 Bolkiah (Prince Jefri) v KPMG (a firm) [1999] 1 All ER 517 From the above discussion, it is apparent, that enforceability to the code is ensured by the TPB by the provision of various penalties as outlined below. Further, the TPB is also authorised to conduct enquiries on individual tax agents who are suspected of causing breach of the above mentioned code and various principles. As a result, amongst the tax agents, the adherence of the code would be expected to be high and hence this code has a major influencing role on the industry regulation by ensuring that the professional standards expected from the tax agents are not only objectively defined but enforceability of the same is also assured. Besides, the ethical standards also are encompassed by these which are critical considering the vulnerability of most clients when it comes to tax matters as there information on the subject matter is minimal (Walpole Salter, 2014). References TPB 2010, Code of Professional Conduct, Tax Practitioners Board, Available online from https://www.tpb.gov.au/TPB/Publications_and_legislation/Board_policies_and_explanatory_information/TPB/Publications_and_legislation/EP/0402_TPB_EP_01_2010_Code_of_Professional_Conduct.aspx (Accessed on September 29, 2016) Walpole, M Salter, D 2014,Regulation of tax agents in Australia, EJournal of Tax Research, Vol. 12, No.2, pp. 335-358