Need advice?
The Tax Practitioners Board (TPB) registers and regulates tax agents and BAS agents (Accountants) across Australia under the Tax Agent Services Act 2009 (TASA). The professional bodies, such as CA ANZ, CPA and IPA (Professional Bodies), also register and regulate their members under their own by-laws.
The TPB and the Professional Bodies regularly carry-out professional conduct investigations, such as:
- please explain letters;
- preliminary enquiries;
- comprehensive investigations; and
- disciplinary hearings.
These activities can arise from client complaints, dob-ins from other Accountants under significant breach reporting rules, and referrals from regulators, including the Australian Taxation Office (ATO) and the Australian Securities and Investments Commission (ASIC).
The TPB and the Professional Bodies will usually target Accountants’ compliance with professional and ethical standards, focusing on conduct that includes:
- making false or misleading statements to government regulators, including the TPB and the ATO;
- conflicts of interest;
- lack of supervision and control of staff and services in the business;
- insolvencies;
- failing to comply with personal tax obligations, including those of related entities;
- criminal behaviours;
- compliance with Accounting Professional & Ethical Standards (APES); and
- otherwise obstructing taxation and other laws.
At the conclusion of these activities, the TPB and the Professional Bodies have the power to:
- sanction Accountants by suspending or termination their registration;
- order the repayment of fees or notification to clients;
- issue official warnings and education orders;
- take no further action.
In some cases, the TPB can also apply to the Federal Court for orders and fines.
Accountants can respond to protect their business, livelihood, staff and clients. The TPB and the Professional Bodies will usually give Accountants the opportunity to respond to allegations that they have made, including any sanction that may be imposed. Accountants can also appeal decisions in some cases to the AAT or through the courts. Any response given to the TPB or the Professional Bodies should be professional, thorough, supported with evidence and on time.
HWL Ebsworth has acted for many Accountants who find themselves and their businesses under investigation. We can help by reviewing their case, preparing responses to the TPB and the Professional Bodies, attending meetings and interviews, and litigating cases, only if required.
Our objective is to help Accountants resolve cases quickly and favourably, thereby protecting their businesses, livelihoods, staff and clients. We also do so by relieving Accountants of the stress and pressure of these case where we can.
Experience
Our team’s experience includes advising:
- Accountant in GSXZ v Tax Practitioners Board, an appeal against termination of the tax agent’s registration in the Administrative Appeals Tribunal (AAT). We successfully obtained a stay of the decision without the requirement to notify clients and confidentiality orders to protect the accountant’s identity and business;
- Accountant in a ‘please explain’ enquiry by the TPB for alleged failures to disclose a criminal conviction in a timely way. We successfully defended the matter and the TPB renewed the accountant’s registration;
- Accountant in T & YFD v Tax Practitioners Board, an appeal against termination of the BAS agent’s registration and failure by the TPB to register a business in the AAT. We successfully litigated the case and the TPB withdrew its allegations in full;
- Accountant in disciplinary proceedings against the CA ANZ for alleged conflicts of interest between two clients of the accountant’s business, leading to losses in a superannuation fund. The CA ANZ issued a caution and minor costs order;
- Accountant in an investigation by the TPB for alleged obstruction of the administration of the tax law, outstanding personal tax obligations, failing to pay trust money to a client, and lack of supervision and control in the business. The matter is on appeal;
- Accountant in an investigation by the TPB for alleged engagement in a tax avoidance scheme to obtain the cash-flow boost for a family member. We provided a second opinion to the accountant as to potential sanctions under the TASA;
- Accountant in an investigation by the TPB for alleged lack of supervision and control in the business, allowing a rogue employee/contractor to misappropriate and re-direct tax refunds from the ATO. We successfully defended the matter and the TPB agreed not to termination the business’ registration; and
- Accountant in an investigation by the TPB for alleged failures to comply with personal tax obligations. The accountant was audited by the ATO for GST and income tax issues, and made a voluntary disclosure after the issues were identified. We successfully defended the matter and the TPB issued an education order.