In last week's Tax Vine (2011 Issue No. 33), we noted that a further update on a meeting attended by Tax Counsel Deepti Paton ATIA on Thursday 25 August 2011 with the Tax Practitioners Board to discuss practice management issues would be provided in this issue of Taxvine. A further update is as follows.
This meeting was held by the Board to discuss the range of practice management issues on which the Board is considering issuing guidance. At the meeting, a number of issues were discussed as being appropriate for the Board's attention, including:
- The meaning of reasonable care in the context of the Code of Professional Conduct responsibility to "take reasonable care in ascertaining a client's state of affairs".
- The interaction between responsibilities under the Code of Professional Conduct and contractual arrangements, especially when the agent is not retained by the taxpayer (for example, where a BAS agent is retained by a tax agent).
- The interaction between the Code of Professional Conduct obligation to "act honestly and with integrity" in light of fees charged or fee agreements with clients.
- The meaning of "lawfully" in the duty to "act lawfully in the best interests of your client."
- The circumstances in which the Board will consider than an agent has in place "adequate arrangements for the management of conflicts of interest".
The Board agreed to take the feedback provided on the priority in which guidance on such issues should be issued under consideration in formulating the Board's work program over the medium term.
Members who would like further detail are encouraged to contact us at TaxPolicy.