Tax Professional Bodies Launch Ad Campaign Against New Ethical Rules Ahead of Key Summit

Six out of 10 Australian tax professional bodies have launched a pre-emptive advertising campaign against controversial new ethical rules ahead of a crucial meeting with Assistant Treasurer Stephen Jones on Friday. The full-page advertisements come as Jones prepares to meet with the professional bodies to address concerns over the impact of the proposed rules.

The Assistant Treasurer had committed to meeting with the professional organizations this week in an effort to resolve differences over the new ethical guidelines. Treasury officials were expected to provide materials to the professional bodies in preparation for the meeting, ahead of a potential disallowance motion to be introduced by Liberal Party senator Dean Smith on September 10.

The bodies behind the advertisements include CPA Australia, Australian Bookkeepers Association, The Institute of Certified Bookkeepers, National Tax and Accountants' Association, and Chartered Accountants Australia and New Zealand (CAANZ). However, several organizations, including the Institute of Public Accountants, Financial Advice Association of Australia, the Tax Institute, and SMSF Australia, chose not to participate in the campaign.

Sources suggest that these groups saw the advertisement initiative as counterproductive to achieving the changes they believe are necessary during Friday's discussions.

Ainslie Van Onselen, CEO of CAANZ, explained that her organization had previously raised concerns with the government that were initially dismissed. “When it was suggested our members’ fears were ‘unfounded’, we shared with the assistant treasurer legal advice we obtained to validate their concerns,” Van Onselen said.

She also noted that many CAANZ members had written to their local MPs to highlight how the new rules were “not only unfair, but incredibly difficult to implement because they are so broad and open to interpretation.” While the government has indicated that guidance from the Tax Practitioners Board (TPB) would clarify the rules, Van Onselen argued that such guidance was “no replacement for black letter law.”

She further pointed out that CAANZ members were witnessing the TPB struggle with providing guidance on the determination, as the tax agent regulator appeared to be grappling with the wording of the rules.

Chris Freeland, CEO of CPA Australia, emphasized that the decision to run full-page advertisements was not taken “lightly.” He explained, “Our decision to run the open letter underscores our deep concerns with certain aspects of these rules and the impact they will have on our members and the profession more broadly.”

Freeland added that while the six organizations value their relationships with the government and other stakeholders, they felt that the perceived unfairness of the rules warranted a strong response. “We are particularly concerned about section 45 of the determination, which requires tax practitioners to disclose to clients ‘any matter’ which may significantly influence a decision of the client to engage the practitioner. In real terms, this may mean sharing irrelevant personal information with clients.”

Earlier this week, Jones described the changes in the determination as modest and framed them as a necessary response to issues within the tax profession, which came to light following the PwC tax leak scandal.

By fLEXI tEAM