In a media release issued on 20 December 2010, the Chair of the Tax Practitioners Board (TPB), Dale Boucher, announced details of requirements for registered tax and BAS agents to have professional indemnity insurance coverage starting from 1 July 2011.
The TPB are aware that approximately 70 percent of BAS agents did not have PI insurance cover when they were first registered with the Board. In contrast, PI insurance is not new to most tax agents.
Under the Board's policy not every agent will have to hold PI insurance cover themselves. For example, employees of firms will be covered under their firm's policy. There are also a number of agents who do not run a business and they will not need to hold PII either.
In releasing its explanatory paper, Mr Boucher said the announcement of the Board's PI insurance approach is the result of nearly 12 months of work, including careful consideration of comments received through working closely with associations, agents, the insurance industry, and from public feedback on a recent exposure draft.
In the New Year the Board will be contacting all agents, outlining their PI insurance cover obligations.