TASA Determination: A new era for accountants

This new set of 8 obligations aims to enhance professional conduct, protect taxpayers, and bolster confidence in the tax system. So, what is the TASA Determination, and what do these changes mean for tax agents in Australia, their businesses and their clients?

The TASA Determination introduces eight new obligations for tax practitioners, supplementing the existing Tax Practitioners Board Code of Professional Conduct.  

These new rules cover a broad range of areas, including: 

• Client communication: Increased transparency and clear communication with clients about services provided and potential conflicts of interest.
• Confidentiality: Stricter rules around handling client information, including restrictions on disclosing information without explicit client consent.
• False and misleading statements: Preventing the provision of inaccurate or misleading information to the Australia Taxation Office (ATO).
• Contingency fees: Limitations on fee arrangements based on tax outcomes.
• Quality control: Enhanced quality assurance measures to ensure professional standards are maintained. 

The new Determination has already commenced; however, the Australian Government has announced that it will insert a transitional rule into the Determination, for firms with up to 100 employees (until 1 July 2025) and larger firms with 101 employees or more (until 1 January 2025).

These firms will be able to comply with these new obligations if they continue to take genuine measures towards compliance during this period, such as:

• Establishing and maintaining a system of quality management.
• Retaining all interviews, files, opinions, assumptions, workpapers, logic, and decision-making advice for 5 years.
• Ensuring competencies for all services they offer and having objective evidence you are competent.
• Advising all current and prospective clients of any matter that could significantly influence the decision of a client to engage with them or to continue to engage to provide a tax agent service. This potentially includes any health issues, partnership disputes or staff shortages.

The TASA Determination has far-reaching implications for tax agents and has been met with considerable angst throughout the industry. Key areas of impact include: 

• Increased compliance burden: Implementing new procedures and documentation to meet the expanded obligations will require additional resources and time. 
• Client relationships: Building stronger client relationships through enhanced communication and transparency has now become a necessity. 
• Risk management: Identifying and mitigating potential risks associated with the new obligations is crucial to avoid disciplinary action. 
• Professional development: Staying updated on the TASA Determination and its implications through ongoing professional development is vital.

To navigate the changes brought about by the TASA Determination, accountants should consider the following steps: 

• Review existing policies and procedures: Assess current practices to identify areas requiring modification to comply with the new obligations.
• Implement robust client communication: Establish clear communication channels and processes to keep clients informed and engaged. 
• Enhance quality control measures: Strengthen internal review and quality assurance procedures to mitigate risks. 
• Stay informed: Keep up to date with TASA developments and seek guidance from professional bodies. 
• The TASA Determination represents a significant challenge for accountants but also an opportunity to enhance professional standards and build trust with clients.  
• By proactively addressing the new requirements and adapting to the changing landscape, accountants can position themselves for success in the evolving tax environment.

Over at ChangeGPS, there is a resource centre containing a variety of templates and documents for accountants, to help them comply with the TASA Determination changes. 

The resources currently available include: 

• Slide deck from 'The Government Gives You 16 Days to Get This Insane Amount of Work Done' webinar.
• TASA Determination 2024 Disclosures for Engagement Documents and Website.
• Quality Management System template by ChangeGPS.
• Risk Management Framework - Template.
• Slide deck from 'Quality Management' webinar 

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