Ministerial Determination Creates Uncertainty for Tax Agents, Says Professional Body
The recent ministerial determination on tax agent services has created further uncertainty for tax agents, according to the Institute of Public Accountants. The determination introduces eight additional obligations that practitioners must comply with, starting from August 1, 2024. However, concerns have been raised about the prescriptive nature of these new obligations and the potential overlap with existing code items.
The Institute of Public Accountants has expressed disappointment that major concerns raised during the consultation process were not addressed in the final determination. The professional body is particularly worried about the impact of the new obligations on the principles-based approach of the Code of Professional Conduct.
One of the key concerns highlighted by the Institute of Public Accountants is the potential weakening of the existing code due to the introduction of vague or unfamiliar concepts. Additionally, there is concern about the duplication and overlap between the new obligations and the existing Code items.
The determination is the first use of new ministerial powers provided under legislation enacted last year. Professional bodies had previously raised concerns about these powers, as they allow for additional obligations to be imposed on tax practitioners without the usual scrutiny in Parliament.
Despite these concerns, the Chair of the Tax Practitioners Board, Peter de Cure, has stated that the new obligations align with existing principles of the Code and that tax practitioners should familiarize themselves with these requirements. The Tax Practitioners Board will be consulting on draft guidance relating to the new Code obligations in the coming weeks.
Overall, the ministerial determination has raised significant challenges for tax agents and the Tax Practitioners Board in administering these new obligations. It remains to be seen how practitioners will adapt to these changes and ensure compliance with the updated Code of Professional Conduct.