Senate disallowance trumps trust in Jones

Despite some assurances from Assistant Treasurer and Minister for Financial Services, Stephen Jones, the joint accounting and advice bodies are backing the passage of a Senate disallowance motion of the Tax Agent Services (Code of Professional Conduct) Determination today.

The simple bottom line from the joint bodies is that what was conceded by Jones last Friday is no guarantee that accountants and BAS agents will have their concerns about the determination addressed.

What is more, what little was conceded by the Minister and Treasury are regarded by the accountants as falling well short of a “practical and fair” regime, particularly around disclosing investigations and ‘dobbing in’ clients.

A statement by the joint bodies acknowledged that Jones had committed to providing revised amendments, guidance and explanation together with an additional round of public consultation.

“However, these amendments will not be finalised and agreed upon before Tuesday’s disallowance vote in the Senate. Public consultation is no guarantee the amendments will be changed in a way that is best for our members, their clients and communities,” the joint accounting bodies statement said.

“Until the changes to the Determination are agreed, the joint bodies remain supportive of the disallowance motion proceeding in the Senate on Tuesday.”

“In their current form, the compliance obligations in the Determination make the jobs of nearly 72,000 tax and BAS agents, who service their communities, challenging and will most likely increase the cost of services to millions of Australians,” the statement said.

“As we’ve been outlining since mid-July, the rules in their current form are an overreach and revised guidance from the Tax Practitioners Board (TPB) or an amended Explanatory Statement will not solve the confusion. This guidance is no replacement for fixing the black letter law.

The joint bodies encompass the Australian Bookkeepers Association, Chartered Accountants Australia and New Zealand, CPA Australia, Financial Advice Association of Australia, Institute of Certified Bookkeepers, Institute of Financial Professionals Australia, Institute of Public Accountants, NTAA, SMSF Association and The Tax Institute.