Question

Outline responsibilities of Tax Agents including Code of Conduct obligations under the Tax Agent Services Act (TASA) and Tax Agent Services Regulations (TASR)

Answer 1

Tax Agent Services Act 2009 (TASA) establishes the Tax practitioners Board and provides for the registration and regulation of tax agents, BAS agents and tax advisers.

Tax agent services are services relating to ascertaining or advising about liabilities, obligations or entitlements of entities under a taxation law. representing entities in their dealings with the Commissioner of Taxation in relation to a taxation law.

Regarding duties and Responsibilities of tax agents, they are expected to be competent, act ethically and professionally in providing quality service and advice to their clients

The TPB is also responsible for ensuring compliance with the Tax Agent Services Act 2009 (TASA), including the Code of Professional Conduct. administering a system to register tax practitioners, ensuring they have the necessary competence and personal attributes

A code of professional conduct is a necessary component to any profession to maintain standards for the individuals within that profession to adhere. It brings about accountability, responsibility and trust to the individuals that the profession serves.

The Code of Professional Conduct (Code) regulates the personal and professional conduct of all registered tax agents, BAS agents and tax advisers.

The Code sets out principles under five separate categories:

• Honesty and integrity

• Independence

• Confidentiality

• Competence

• Other responsibilities.

The Code sets out principles under five separate categories discussing in detail as follows.

Honesty and integrity

you must account to your client for the money or other property.

1. You must act honestly and with integrity.

2. You must comply with the taxation laws in the conduct of your personal affairs.

3. If you:

   • receive money or other property from or on behalf of a client, and

   • hold the money or other property on trust

Independence

1. You must act lawfully in the best interests of your client.

2. You must have in place adequate arrangements for the management of conflicts of interest that may arise in relation to the activities that you undertake in the capacity of a registered tax agent.

Confidentiality

1. Unless you have a legal duty to do so, you must not disclose any information relating to a client’s affairs to a third party without your client’s permission.

Competence

1. You must ensure that a tax agent service that you provide, or that is provided on your behalf, is provided competently.

2. You must maintain knowledge and skills relevant to the tax agent services that you provide.

3. You must take reasonable care in ascertaining a client’s state of affairs, to the extent that ascertaining the state of those affairs is relevant to a statement you are making or a thing you are doing on behalf of a client.

4. You must take reasonable care to ensure that taxation laws are applied correctly to the circumstances in relation to which you are providing advice to a client.

Other responsibilities

1. You must not knowingly obstruct the proper administration of the taxation laws.

2. You must advise your client of the client’s rights and obligations under the taxation laws that are materially related to the tax agent services you provide.

3. You must maintain the professional indemnity insurance that the Board requires you to maintain.

4. You must respond to requests and directions from the Board in a timely, responsible and reasonable manner.