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Greater independence from the ATO and new sanction powers are among some of the changes the Tax Practitioners Board is preparing for following the independent review of the regulator.
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TPB prepares to usher in new era of regulation
06 August 2021
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9 minute read
The TPB launched its 2021–22 corporate plan on Friday, setting out three key objectives as it prepares for a new era in view of the Keith James-led independent review of the TPB.
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The regulator will now work closely with the government and the Treasury to design and implement reforms recommended by the James review, while upholding standards through increased sanctions and litigation, and improving the registration experience for tax practitioners.
TPB chair Ian Klug said the 28 recommendations put forward by the James review would now be prioritised, including undertaking a key reform measure that will see the regulator distance itself from the ATO after the review found that current funding and staffing arrangements had failed to reflect an appropriate level of independence.
“The review’s recommendations and the government’s response will result in a more effective and independent TPB, which will, in turn, enhance community confidence in our work and the tax profession,” said Mr Klug.
“The TPB will continue to maintain and uphold the integrity of the tax system more broadly. This role will be enhanced by the modernisation of our enabling legislation and better alignment of our purpose and objectives with our current role, responsibilities and expectations.”
The TPB has already made a head start with the review’s recommendations, having established the Tax Practitioner Governance and Standards Forum, a platform that will allow the TPB to consult closely with professional associations, the ATO, and the Professional Standards Council on legislative and regulatory changes.
Consultation on new sanction powers for the TPB will soon be underway, and will examine the review’s recommendation of permanent disbarment from the tax profession, enforceable undertakings, interim suspensions, quality assurance audits, infringement notices, and external intervention to wind up a practice.
In the meantime, Mr Klug said the TPB would work closely with fellow regulators, including the ATO, using data-driven strategies to target high-risk practitioners and unregistered preparers.
“This will improve the professional standards of the tax profession by investigating, sanctioning and terminating the registration of targeted high-risk tax practitioners who drive tax avoidance and evasion, create a reputational risk for the tax practitioner profession, and reduce community confidence in the integrity of the tax system,” said Mr Klug.
According to the TPB’s corporate plan, successful compliance outcomes will include increased sanctions that reflect the level of risk posed to the tax practitioner profession and tax system, and civil penalty action against unregistered preparers.
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