TASA Code of Professional Conduct: 2024 Determination's 8 new obligations

Legal source and commencement

The Tax Agent Services (Code of Professional Conduct) Determination 2024 was registered on 2 July 2024 as legislative instrument F2024L00849. This Determination is made by the Minister under s 30-12 of the Tax Agent Services Act 2009 (TASA) and supplements the existing 14 Code obligations outlined in s 30-10 TASA. It introduces 8 additional obligations for registered tax agents and BAS agents, building upon the requirements detailed in the Tax Practitioners Board code of conduct.

The Determination’s commencement is transitional. Agents with more than 100 employees must comply from 1 January 2025. Agents with 100 or fewer employees, as determined by their employee count as at 31 July 2024, must comply from 1 July 2025.

An amending instrument, registered on 8 October 2024, provided further clarification to sections 15 (false or misleading statements) and 45 (keeping clients informed) within the Determination.

The 8 new obligations

The 2024 Determination introduces eight new obligations for tax agents. These obligations are designed to strengthen professional conduct and accountability within the tax profession. Key areas of focus include upholding and promoting ethical standards, and ensuring transparency and accuracy in client communications. TPB breach reporting 2024 reforms outlines further changes to reporting obligations.

New requirements address specific situations. These include rules regarding false or misleading statements, which now incorporate an obligation to notify the ATO where a client has failed to correct a material misstatement. Agents must also manage conflicts of interest when dealing with government and maintain confidentiality regarding dealings with government departments.

Further obligations relate to operational practices. These cover keeping proper client records, ensuring competent tax services, maintaining a quality management system, and providing current and prospective clients with information that could significantly influence their decision to engage the agent’s services.

The false-or-misleading statement rule (s 15)

Section 15 addresses statements made to the ATO or TPB. It requires agents to take reasonable steps to correct any false, incorrect, or misleading statement that is material. This obligation applies where the statement was made by the agent or directly assisted by the agent. TPB breach reporting 2024 reforms

If a client refuses to correct a material false, incorrect or misleading statement, the agent must either withdraw services or, in defined circumstances, notify the ATO or TPB. The rule specifically excludes the need to disclose information covered by legal professional privilege.

Practical implementation of this obligation, including documenting attempts to obtain client correction, is detailed in TPB guidance TPB(I) 47/2024.

Quality management systems and client disclosure (s 40, s 45)

Section 40 mandates that agents establish and maintain a quality management system (QMS). The system must be appropriate for the size and nature of the practice. The Tax Practitioners Board (TPB) has aligned expectations for QMS with the IAASB International Standard on Quality Management 1 (ISQM 1) Tax Practitioners Board code of conduct.

Section 45 requires agents to provide current and prospective clients with information regarding matters that could substantially affect their decision about engaging or continuing to engage the agent’s services. This includes, but is not limited to, situations where the agent has been suspended, terminated, or sanctioned by the TPB, or has a relevant criminal conviction within the last 5 years.

Non-compliance with the Determination constitutes a breach of the Code. Agents found in breach may face sanctions from the TPB, which can range from a caution to termination of registration Tax Practitioners Board code of conduct.