ATO - Role of ATO and TPB

Question

1. Is the ATO of the view that the regulation of the professional conduct of tax agents (otherwise subject to the Tax Agent Services Act 2009), who are registered with the TPB and who are from large firms, such as the big 4 accounting firms, should be dealt with by the ATO and not the TPB? a. If yes, how does such a view square with section 1.15 of the Tax Agent Services Act and the fact that, under current legislative settings, the ATO has no power to sanction any misconduct as prescribed by the TASA Code? 2. Have any instructions been given to ATO staff, or in the ATO that they should not take action to: a. Assist TPB staff who may seek to investigate possible misconduct by any agent from any large accounting firm? b. ATO staff working in the TPB that they must not investigate possible misconduct by any agent from any large accounting firm? c. TPB staff that they must not use TPB statutory powers to obtain information from the ATO if the ATO asserts that the relevant information is confidential? 3. Is the ATO of the view that settlement arrangements entered into by it with tax agents or their clients are confidential in all circumstances? a. If yes, how does this align with the TPB's administration of the Tax Agent Services Act, and the fact that the statutory powers of the TPB to investigate are not expressed to be subject to confidentiality agreements into by the ATO? 4. Will the ATO consider changing any instructions or practices that it adopts to settle tax disputes explicitly, so as to provide that any confidentiality agreements are subject to law and specifically will not operate to preclude any investigations or action by the TPB under the TASA, or any other regulatory body? 5. Is the ATO concerned that an opinion could be formed that there could be an apparent conflict of interest if senior officials or statutory office holders, who have worked for example in a big four accounting firm, may have participated in any decisions or practices to limit the jurisdiction of the TPB as described in question 1?

Answer

See attached response.

Documents

• Question with answer (PDF) (opens in a new tab)
• SQ26-000297 ATO - Role of ATO and TPB.pdf (opens in a new tab)