Yeah right, if I had $10.00 for every time I have heard “oh I only bookkeep for my Brother in Law, I don’t need to be registered” I would probably not need to practise..
So as of 1 July 2024 the TPB is going to throw another significant change at the Bookkeeping Industry of Australia.
The TPB has updated the Tax Practitioners Code of Ethics that all Tax Practitioners must abide by to include a Duty to Report. Which means Tax Practitioners like me now have a duty to dob in dodgy bookkeepers.
Understanding the Code of Professional Conduct
The TPB's Code of Professional Conduct sets out the ethical and professional standards expected of tax practitioners. The Code covers various aspects including honesty and integrity, independence, confidentiality, competence, and other professional behaviours. Adherence to these standards is not just about maintaining one's own reputation but also about protecting the integrity of the tax profession as a whole.The Duty to Report
If a tax practitioner has reasonable grounds to believe that another practitioner has significantly breached the Code, they have a duty to report this. The rationale behind this duty is to ensure that any unethical or unprofessional behaviour is promptly addressed, thereby upholding the overall standards of the profession.What Constitutes a Significant Breach?
Determining whether a breach is significant involves assessing the severity and impact of the breach. Factors that might influence this assessment include:- Financial Impact: The extent to which the breach has caused financial harm to clients or the public.
- Frequency: Whether the breach is an isolated incident or part of a pattern of behaviour.
- Intent: Whether the breach was intentional, reckless, or due to negligence.
- Reputation: The potential damage to the reputation of the profession.
Steps to Notify the TPB and Recognised Professional Associations
- Gather Evidence: Before making a report, ensure you have reasonable grounds and supporting evidence of the breach. This could include documentation, correspondence, or any other relevant information.
- Write the Notification: The notification should be in writing and must detail the nature of the breach, the evidence supporting your belief, and any other relevant information.
- Notify the TPB: Submit the written notification to the TPB. This can typically be done via the TPB’s official channels, such as their website or official email.
- Notify the Professional Association: If you are a member of a TPB-recognised professional association, you must also notify them in writing. Each association may have its own procedures for handling such notifications, so it’s important to follow their specific guidelines.
Why Reporting Matters
Reporting significant breaches is crucial for several reasons:- Maintaining Integrity: It helps maintain the integrity and trustworthiness of the tax profession.
- Protecting Clients: Clients rely on tax practitioners to act ethically and professionally. Reporting breaches protects clients from potential harm.
- Professional Accountability: It ensures that tax practitioners are held accountable for their actions, fostering a culture of responsibility and ethical behaviour.
