Subdivision B—Honesty and integrity
10 Upholding and promoting the ethical standards of the tax profession
Independently, and in cooperation with other registered tax agents and BAS agents, you must:
(a) uphold and promote the Code of Professional Conduct; and
(b) not engage in any conduct that you know, or ought reasonably to know, may:
(i) undermine public trust and confidence in the integrity of the tax profession (including conduct that discredits the tax
profession or brings the tax profession into disrepute); or
(ii) undermine public trust and confidence in the integrity of the tax system; and
(c) not engage in any conduct that you know, or ought reasonably to know, may undermine the collective work of
registered tax agents and BAS agents, as a tax profession, to uphold and promote:
(i) the Code of Professional Conduct; and
(ii) public trust and confidence in the integrity of the tax profession and tax system; and
(iii) each member of the profession being held accountable for their individual conduct.
Note: A registered tax agent or BAS agent has an obligation to notify the Board of significant breaches of the Code see
Subdivision 30-C of the Act.
15 False or misleading statements
Statements made to the Board or the Commissioner
(1) You must not:
(a) make a statement to the Board or the Commissioner; or
(b) prepare a statement that you know, or ought reasonably to know, is likely to be made to the Board or Commissioner by an
entity; or
(c) permit or direct someone else to make or prepare such a statement;
that you know, or ought reasonably to know, is false, incorrect or misleading in a material particular, or omits any matter or thing
without which the statement is misleading in a material respect, in your capacity as a registered tax agent or BAS agent or in any other
capacity.
Note: For further obligations relating to false or misleading statements to the Commissioner see section 50‑20 of the Act.
(2) As soon as possible after you become aware that a statement given to the Board or Commissioner was false, incorrect or
misleading in a material particular at the time it was made, or omitted any matter or thing without which the statement is misleading
in a material respect, you must take all reasonable steps to:
(a) where you made the statement (or permitted or directed someone else to make the statement)—correct the statement; and
(b) where you prepared the statement (or permitted or directed someone else to prepare the statement)—advise the maker of the
statement that the statement should be corrected; and
(c) where you prepared the statement and the maker does not correct the statement within a reasonable time—notify the Board or
Commissioner that the statement is false, incorrect or misleading in a material particular, or omitted some matter or thing without
which the statement is misleading in a material respect.
Statements made to other Australian government agencies
(3) You must not:
(a) make a statement to an Australian government agency (other than the Board or the Commissioner); or
(b) prepare a statement that you know, or ought reasonably to know, is likely to be made to an Australian government agency
(other than the Board or the Commissioner) by an entity; or
(c) permit or direct someone else to make or prepare such a statement;
that you know, or ought reasonably to know, is false, incorrect or misleading in a material particular, or omits any matter or thing
without which the statement is misleading in a material respect, in your capacity as a registered tax agent or BAS agent or in any other
capacity.
Subdivision C—Independence
20 Conflicts of interest in dealings with government
In relation to any activities you undertake for an Australian government agency in a professional capacity, you must:
(a) take reasonable steps to identify and document any material conflicts of interest (real or apparent) in connection with an
activity undertaken for the agency; and
(b) disclose the details of any material conflict of interest (real or apparent) that arises in connection with an
activity undertaken for the agency to the agency as soon as you become aware of the conflict; and
(c) take reasonable steps to manage, mitigate, and where appropriate and possible, avoid, any material conflict of
interest (real or apparent) that arises in connection with an activity undertaken for the agency (except to the extent that
the agency has expressly agreed otherwise).
Subdivision D—Confidentiality
25 Maintaining confidentiality in dealings with government
Disclosure
(1) Unless you have a legal duty to do so, you must not disclose any information you have received, directly
or indirectly, from an Australian government agency, in connection with any activities you undertake with the agency in a
professional capacity, except to the extent that all of the following apply:
(a) it is reasonable to conclude that the information received from the agency was authorised by that agency for further
disclosure; and
(b) any further disclosure of the information is done consistently with the agency’s authorisation.
Note: This subsection would not prohibit disclosure information released by an agency to the general public as it would be reasonable
to conclude that such information was authorised for further disclosure. However, further disclosure of that information may be subject to
conditions that are expressly imposed by an agency (such as limits on how the information is to be reproduced if attributed to the agency).
Use for personal advantage
(2) You must not use any information you have received, directly or indirectly, from an Australian
government agency, in connection with any activities you undertake with the agency in a professional capacity, for your personal
advantage, or for the advantage of an associate, employee, employer or client of yours, except to the extent that all of the following
apply:
(a) it is reasonable to conclude that the information received from the agency was authorised by that agency to be used in a way
that may provide for such an advantage; and
(b) any further use of the information was done consistently with the agency’s authorisation.
Subdivision E—Competence
30 Keeping of proper client records
(1) You must keep records that correctly record the tax agent services you have provided, or that are provided on your behalf, to
each of your clients, including former clients.
(2) The records must:
(a) be in English, or readily accessible and easily convertible into English; and
(b) be retained for at least 5 years after the service has been provided; and
(c) show the nature, scope and outcome of the tax agent service provided; and
(d) include all relevant information considered in the provision of the tax agent service (including information exchanged with
the client, advice provided to the client, and for more complex matters: the relevant facts, assumptions and reasoning underpinning any
advice provided to the client).
35 Ensuring tax agent services provided on your behalf are provided competently
(1) You must ensure that each entity providing tax agent services on your behalf maintains knowledge and skills that are relevant
to the tax agent services the entity is providing.
(2) You must ensure that each entity providing tax agent services on your behalf is appropriately supervised, having regard to
knowledge and skills of the entity, the tax agent services being provided by the entity, and your system of quality management.
Subdivision F—Other responsibilities
40 Quality management systems
(1) You must establish and maintain a system of quality management, in relation to the provision of tax agent services by you, or
on your behalf, which is designed to provide you with reasonable confidence that you are complying with the Code of Professional Conduct.
(2) You must document and enforce the policies and procedures of your system of quality management.
Note: A system of quality management includes policies and procedures relating to governance and leadership, monitoring of performance,
adherence to the Code of Professional Conduct, client engagement, proper keeping of records, protecting confidentiality of information, the
management of conflicts of interest, and the recruitment, training and management of employees.
45 Keeping your clients informed of all relevant matters
Obligation
(1) You must advise all current and prospective clients, in the manner and form set out in subsection (2), of all of the
following:
(a) any matter that could significantly influence a decision of a client to engage you, or to continue to engage you, to provide a
tax agent service;
(b) that the Board maintains a register of tax agents and BAS agents and how they can access and search the register;
(c) how they can make a complaint about a tax agent service you have provided, including the complaints process of the Board.
Manner and form requirements
(2) Where you are required to advise clients of information covered by subsection (1), you must do so:
(a) by giving the information mentioned in a paragraph in subsection (1), in writing, to current and prospective
clients in a prominent, clear and unambiguous way; and
(b) for information mentioned in paragraph (1)(a):
(i) if a client makes inquiries to engage or re-engage you to provide tax agent services, and you are aware of the matter at that
time—at the time of the inquiry; or
(ii) otherwise—within 30 days of becoming aware of the matter; and
(c) for information covered by either paragraph (1)(b) or (1)(c)—upon engagement or re-engagement of a client (as the case
requires), or upon receiving a relevant request.
Example Whilst not limiting the ways in which a registered tax agent or BAS agent could satisfy subsection (2), an agent who does all
of the following, in the form and within the times mentioned in subsection (2), will have given information to all their current and
prospective clients as required under this section:
(a) the agent publishes the information on a publicly accessible website that they use to promote the tax agent services they offer,
and
(b) the agent includes the information in letters of engagement or re‑engagement (as case the requires) given to each of their clients.
