This regime will redefine the client-adviser relationship and impact the scope of services provided by registered tax agents.

Summary of the new legislation

The Tax Agent Services Act 2009 (the Act) received Royal Assent on 26 March 2009 and will effectively apply from January 2010.

The underlying themes of the Act are consumer protection and the regulation of professionals providing tax-related services to the public.

The key features of the Act are:
  • the establishment of a national Tax Practitioners Board (TPB).
    The TPB replaces the six (6) State-based tax agent boards and is responsible for the registration and oversight of tax practitioners
  • a wider scope of application
    a broader range of services providers are encompassed within the definition of tax practitioner, including Business Activity Statement (BAS) service providers
  • registration requirements these include the ‘fit and proper’ person test and minimum education and experience requirements
  • the introduction of a code of professional conduct (CPC) – The CPC will govern the ethical and professional standards for tax practitioners
  • a range of sanctions for breaches of the CPC – this ranges from no action or a written caution to suspension or termination of registration
  • safe harbour from certain administrative penalties for taxpayers who engage a tax practitioner.
What does this mean for clients of Moore Stephens?

Broadly, registered tax agents will be making further enquiries of their clients’ tax affairs to ensure that ‘reasonable care’ has been taken in the lodgement of income tax returns and BAS returns.  They will not be able to lodge income tax returns and BAS returns for clients without review, nor are they able to perform ‘reduced scope’ income tax return engagements.

As further information comes to hand, we will discuss with you any impact on the scope or nature of the provision of our services.

Allan Mortel - Sydney
amortel@moorestephens.com.au