Discussion on Tax Practitioners Board breach reporting obligations

Tax Practitioners Board chair Peter de Cure has announced that new breach reporting obligations will soon apply to registered tax practitioners starting from 1 July. This development has sparked a flurry of questions from practitioners who are seeking clarity on what constitutes a ‘significant breach’ and the circumstances under which they would be required to report themselves or other practitioners to the TPB and their professional associations.

Speaking at CPA Australia’s Public Practice Retreat in Lorne, Victoria, de Cure emphasized that the TPB will adopt a risk-based approach when deciding to initiate a formal investigation. He also cautioned against practitioners making frivolous or malicious claims against their peers, as such behavior could itself be considered a breach of the Code.

Furthermore, de Cure outlined the board’s transitional approach to enforcing compliance, which will prioritize consultation, education, and building awareness to improve compliance, supervisory, and regulatory systems. However, CPA Australia members expressed concerns about the uncertainty surrounding the reporting process, how the TPB will handle reports, and whistleblower protections.

Gavan Ord, a spokesperson for CPA Australia, highlighted that practitioners have been caught off guard by the last-minute legislative changes and are struggling to understand how to adapt to these new requirements. He emphasized that CPA Australia members already adhere to professional and ethical standards, which provide a solid foundation for ensuring governance and compliance.

Robyn Jacobson, a senior advocate at the Tax Institute, raised concerns about the lack of consultation with key stakeholders in the accounting and tax profession regarding the breach reporting obligations. She also noted the absence of an explanatory memorandum accompanying the legislation, which would offer further guidance on the significant changes.

Overall, practitioners are grappling with the implications of the new reporting obligations and are seeking clarity on their roles and responsibilities in regulating each other within the profession. The industry is bracing for a period of adjustment as practitioners navigate these changes and strive to uphold the highest standards of professionalism and compliance.