In a media release issued on 18 October 2010, the Tax Practitioners Board announced the release of details of its proposed requirement that registered tax agents and BAS agents are to hold professional indemnity (PI) insurance cover from 1 July 2011. This will apply to approximately 60,000 agents now coming under the TPB’s jurisdiction.
An Exposure Draft, setting out details of the Board’s proposed PI Insurance requirement for registered agents, has also been issued. The draft outlines the Board's approach in general and sets out:
- why agents will need to have cover,
- what is adequate cover and how to obtain it in time for 1 July 2011 when agents will need to be covered, and
- the consequences if agents don’t comply.
The Tax Practitioners Board’s exposure draft on Professional Indemnity Insurance will be open for public comment until 15 November 2010.