Australian tax firms face new outsourcing accountability rules
SYDNEY, AUSTRALIA — The Tax Practitioners Board (TPB) has warned Australian tax firms about their responsibilities regarding outsourced services.
At a recent IPA conference, TPB chair Peter de Cure stated that firms would be accountable for quality control under new code changes, specifically highlighting the requirements of section 40.
Quality management systems now mandatory
Section 40 requires all tax practitioners to establish and maintain a comprehensive quality management system. This system is essential for ensuring compliance with the code when providing tax or BAS agent services.
“Section 40 of the code obligates all tax practitioners to establish and maintain a system of quality management,” emphasized de Cure, underscoring the necessity of having qualified and well-trained staff.
De Cure noted that while smaller practices may not need all staff to be experts in areas like transfer pricing, employees must be adequately trained for their daily tasks. He highlighted the importance of proper qualifications and registration with the TPB, especially when engaging external consultants.
Offshore outsourcing requires strict oversight
The TPB chair stressed that firms using offshore outsourcing must ensure these providers are appropriately qualified and supervised.
“If you’re using offshore people, then it’s your obligation to make sure that those people… are appropriately qualified and supervised,” de Cure warned. He advised firms to confirm whether offshore providers have registered tax agents who can demonstrate their staff’s qualifications.
Importance of compliance and documentation
De Cure also emphasized the need for thorough documentation and governance within practices. Firms are encouraged to monitor performance metrics, such as audit outcomes and client service quality, to ensure compliance with section 40.
“You need to monitor your performance,” he advised, highlighting the importance of maintaining records of client engagement and protecting client confidentiality.
Addressing recruitment and conflict of interest
The TPB recommends that practices implement conflict of interest policies and recruit staff who are fit for their roles. De Cure also reminded practitioners about new obligations concerning disqualified entities, urging them to verify potential hires’ status with the TPB.
These new code changes underscore a significant shift in regulatory expectations, placing greater emphasis on accountability and oversight in outsourced services. By adhering to these guidelines, tax practitioners can ensure they meet industry standards while safeguarding their clients’ interests. The TPB’s directives highlight the critical role of quality management in maintaining trust and integrity within Australia’s tax advisory sector.
