Why obligations matter
As a taxpayer, you should know what you owe the Australian Taxation Office (ATO), and understand that your tax practitioner has obligations to you, to the ATO and to the Tax Practitioners Board (TPB). For our own disclosures, see our TASA disclosure statement.
Your obligations as a client
It’s your responsibility as a taxpayer to:
- be truthful in the information you give your tax practitioner;
- keep the records the law requires and pass them to your practitioner on time;
- cooperate with your practitioner’s requests and meet their due dates; and
- comply with the tax laws.
If you don’t meet them
- the ATO may impose administrative penalties (fines);
- interest charges may apply;
- in some cases, criminal prosecution may be sought; and
- the ATO may start debt recovery.
What your tax practitioner must do
Your tax practitioner is required to:
- act honestly and with integrity;
- uphold and promote the ethical standards of the tax profession;
- act lawfully in your best interests;
- manage any conflicts of interest;
- take reasonable care to understand your circumstances and apply the tax laws correctly;
- keep your information confidential, unless there is a legal duty to disclose it;
- provide services competently;
- not knowingly obstruct the administration of the tax laws;
- advise you of your rights and obligations under the tax laws;
- account to you for money or other property held on trust;
- not make false or misleading statements to the TPB or ATO and, in some cases, withdraw from their engagement with you and notify the TPB or ATO of certain matters;
- address any false or misleading statements they are responsible for, and work with clients to correct other false or misleading statements;
- keep proper records; and
- keep you informed of certain matters so you can make informed decisions (see below).
When a practitioner doesn’t meet their obligations
For the practitioner
- their registration can be suspended or terminated, so they can’t practise;
- the TPB can issue a caution or orders, such as completing education or working under the supervision of another registered practitioner;
- the Federal Court can impose fines; and
- in cases of fraud or criminality, penalties may lead to prosecution.
For you
- your tax and superannuation matters may be inaccurate;
- you may face ATO enquiries or audits;
- any tax shortfall may attract penalties and interest; and
- you may have litigation options to review decisions and recover debts.
What your tax practitioner must keep you informed of
The TPB public register
The TPB keeps a public register so you can make informed choices about a tax practitioner. You can check whether someone is a registered BAS agent or tax agent, and find practitioners in your area. The register also shows higher-risk cases, where the TPB has imposed serious sanctions. Search it at tpb.gov.au/public-register.
Making a complaint to the TPB
The TPB welcomes feedback, because it helps improve services and the regulatory system. You can report a tax practitioner, or an unregistered preparer who isn’t complying with the law, using the TPB’s online complaint form. The TPB assesses every complaint and referral. More information is at tpb.gov.au/complaints.
Rights, responsibilities and obligations
Your practitioner must explain their rights, responsibilities and obligations, including those owed to you, and the obligations you owe them. These can come from the tax laws or from the particular services provided. The summary above covers the key points, and your practitioner will give you further detail.
Prescribed events in the last 5 years
If any of the following has happened to your practitioner in the last 5 years, they must tell you when you first ask about engaging or re-engaging them for tax agent services. Otherwise, they must tell you within 30 days of becoming aware of it. This also applies to prospective clients. The events are:
- being suspended or terminated by the TPB;
- being an undischarged bankrupt, or going into external administration;
- being convicted of a serious taxation offence, or an offence involving fraud or dishonesty; and
- serving or being sentenced to a term of imprisonment in Australia of 6 months or more.
Events that occurred before 1 July 2022 do not need to be disclosed.
Registration conditions
If your practitioner’s registration is subject to conditions, they must tell you. For example, they might be limited to research and development tax services, or to tax (financial) advice services. They must tell you when you first ask about engaging or re-engaging them, or otherwise within 30 days of becoming aware of the condition.