TPB breach reporting — TASA 2024 reforms for tax practitioners
When registered tax practitioners must self-report or report another agent under the TPB's breach reporting regime that began on 1 July 2024.
Two new reporting obligations from 1 July 2024
The TASA 2024 reforms introduce two new breach reporting obligations for registered tax practitioners. These obligations are designed to ensure greater accountability within the tax profession and assist the Tax Practitioners Board (TPB) in upholding professional standards.
The first new obligation requires tax practitioners to self-report breaches of the Code of Professional Conduct. This applies when a practitioner identifies that they have committed a significant breach.
The second obligation requires a tax practitioner to report another practitioner if they have reasonable grounds to believe that practitioner has committed a significant breach of the Code of Professional Conduct. Both reporting obligations apply to breaches occurring on or after 1 July 2024.
30-day reporting deadline
Practitioners must lodge breach reports in writing within 30 days of when they first had reasonable grounds to believe a significant breach has occurred. This timeframe is a key requirement under the Tax Agent Services Act 2009, as reformed by TASA 2024.
Significant breaches are defined as those that involve substantial harm, loss of client trust, repeated breaches, or material non-compliance with the Code. The determination of whether a breach is ‘significant’ rests with the practitioner.
Guidance on breach reporting, including further detail on the requirements, is available in TPB(GS) 48/2024.
Confidentiality and the legal duty exception
Notifications made under the breach reporting regime may require the disclosure of client information. This is inherent in the process of reporting potential breaches of professional standards.
Disclosure of this information is generally permitted due to the legal-duty exception outlined in Code item 6 (confidentiality). This exception applies because reporting is mandated by law under the TASA.
Reporters can request that the TPB not identify them to the other tax practitioner involved in the matter. The TPB will also not notify the other tax practitioner that a report has been received.
Whistleblower protections and Code item 17
From 1 July 2024, the scope of whistleblower protections has expanded. Eligible whistleblowers can now disclose information relating to a related entity to the Tax Practitioners Board (TPB) and still be eligible for protection. This change aims to encourage the reporting of potential breaches of the law and professional standards.
The Tax Agent Services (Code of Professional Conduct) Determination 2024, registered on 2 July 2024, introduces eight additional obligations under Code item 17. These obligations reinforce professional conduct expectations for tax practitioners.
These new Code obligations address areas such as client communication regarding engagement decisions, the implementation of quality management systems, obligations relating to false or misleading statements, and appropriate dealings with the TPB and the Commissioner.
Frequently asked
What is a 'significant' breach?
There is no single dollar threshold. The TPB considers the nature, harm, duration, and whether the breach is repeated or systemic. Errors that materially harm a client, the public, or the integrity of the tax system are likely to be significant.
Do I have to report myself before I know the facts?
No. The 30-day clock starts when you have reasonable grounds to believe a significant breach has occurred. Reasonable internal investigation before forming that belief is acceptable.