My CPE is closely monitoring changes to this Code as they significantly impact compliance requirements and operational procedures for tax agents and BAS agents. We are committed to communicating and educating the broader bookkeeping community on how they can implement strategies to comply with the obligations.
Assistant Treasurer Stephen Jones recently introduced the Tax Agent Services Code of Professional Conduct as a response to the unethical and unprofessional behaviour of a small minority of the tax profession.
The controversial introduction of the new professional conduct code for tax and BAS practitioners remains in force after an attempted disallowance motion was narrowly avoided in the Senate this week.
The Outcome:
The Determination, made under the Tax Agent Services Act 2009, withstood the motion due to a tied vote. According to legislative procedure, a regulation remains in effect if a disallowance motion fails, or results in a tie.
Evolving Obligations:
This Determination remains subject to change, however some clarity has been provided in recent days.
The application and transitional provisions outlined in Part 3 of the Determination stipulate when the obligations take effect for registered tax and BAS agents, according to their size and employment structure.
Currently the obligations are set to apply from 1 July 2025 for agents with 100 employees or fewer as of 31 July 2024. For all others, the obligations take effect from 1 January 2025.
Employee counts must be conducted at the practice or firm level, considering all employees within connected or affiliated entities. If a tax or BAS agent moves between firms during the transition period, the applicable obligations will be determined by their employment status at that time.
The provisions also clarify the application of existing rules regarding false or misleading statements and record-keeping, which will apply from the commencement date of August 1 2024.
Additionally, transitional rules state that section 45, which involves keeping clients informed of relevant matters, applies to issues arising from 1 July 2022 onwards. However, clients must be informed of any matter arising before the commencement date within 30 days after section 45 begins to apply to the agent, provided the section still applies to that matter at the time.
Further change will be made to reduce duplication covered in other Code items, as well as ensuring the Code is clear and unambiguous to interpret for both practitioners and the Tax Practitioners Board (TPB).
Sonya Farrawell, My CPE CEO