Petition against ‘unfair’ tax agent rules gathers 2,000 signatures

A petition against “unfair and unworkable” changes to the rules governing tax agents has closed with more than 2,000 signatures, calling on assistant treasurer Stephen Jones to reconsider the August 1 shake-up.

Under a new decision signed by the Deputy Minister, tax professionals will have to comply with eight new obligations under the Code of Professional Ethics for Tax Agent Services starting next month.

He presents these changes as a way to protect and maintain ethical standards in the tax profession, following high-profile incidents such as the PwC scandal.

But the legislation has taken the accountancy sector by surprise, with industry representatives suggesting the speed and scope of the new changes would be impractical for smaller firms.

Concerns about the reform were channeled into a Change.org petition launched Monday by David Boyar, chief executive of accounting and compliance software provider ChangeGPS.

“These measures are significantly different from the draft rules that our industry trade bodies provided feedback on, and are simply not feasible for small businesses to comply with in such a short time frame,” the Change.org petition reads.

She drew particular attention to the rule change requiring tax professionals to inform their clients of “any matter that may materially influence a client’s decision to retain or continue to retain your services.”

“This requirement constitutes an invasion of privacy and goes beyond what is necessary for transparency and accountability,” the petition reads.

“This places an unreasonable burden on small accounting firms and exposes personal information that should remain private.”

In light of these concerns, the petition asks the Deputy Treasurer to either delete the clause entirely or to clarify that “any matter” relates only to the agent’s registration with the Tax Practitioners Board.

It also calls for recognition that the government’s large-scale tax registration reforms are a response to misconduct by the country’s largest accounting firms, not neighborhood operators.

The petition closed on Thursday after reaching its goal of 2,000 signatures.

Its closure comes after a joint letter from major accounting representatives asked the deputy treasurer to rethink – or at least delay – the Aug. 1 rule changes.

Participants must now anxiously await further information on the reforms.

The Tax Practitioners Board is preparing materials to guide tax agents through the changes, but with just days to go until the rules come into force, some industry leaders fear the guidance may come too late.

Tax officials and accountants must now prepare for the rule change, but the legislative instrument that underpins the rule changes must also survive a rejection period, a period during which Parliament can veto or overturn the decision.

Smart Business contacted the deputy treasurer’s office for comment.

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