Message from the Chair
Many tax (financial) advisers will complete their annual declaration online for the first time in 2018-19. Your registration depends on you completing it when it is due.
The annual declaration requirement was introduced for tax (financial) advisers in August 2017. The importance of the annual declaration is that it demonstrates tax practitioners are meeting their ongoing registration requirements. Importantly, completion of the annual declaration should take less than five minutes online and you must do it personally. Your Australian financial services licensee cannot complete this for you.
Failure to submit your annual declaration could result in a loss of registration. In 2017-18, 605 tax practitioners surrendered their registration, while 16 tax practitioners failed to complete their annual declaration and had their registration terminated.
Your annual declaration will be due on the anniversary of your registration renewal date. You need to complete your annual declaration with us each year, other than in the year you need to renew your registration. We will email you 45 days before your due date to let you know when your annual declaration is due and how to complete it – therefore it is important to keep your email address up to date with us.
Having processed more than 12,000 tax (financial) adviser renewals by 30 June this year, the TPB’s focus will now be on early intervention and ensuring ongoing compliance by tax practitioners with registration requirements and the Code of Professional Conduct (Code).
In 2018-19 we will undertake reviews of practitioners continuing professional education (CPE) records to ensure compliance with our CPE policy and their renewal requirement. These reviews will provide insights into how tax practitioners are maintaining their knowledge and skills relevant to the services they provide that help us develop targeted guidance and support.
The TPB will also have a greater focus on helping to combat the black economy, ensuring compliance with taxation laws in the area of work-related expenses, unregistered entities and working with the ATO to identify and manage agents of concern. The TPB will also be responding to outcomes and any potential recommendations from the Inspector-General of Taxation’s review into the future of the tax profession.
These activities align with our risk-based approach to compliance, focusing our resources on issues where there is the greatest risk of harm to taxpayers and the community.
Professional standards for financial advisers
Over the last few months, a number of regulatory bodies, including the Australian Securities and Investments Commission and the Financial Adviser Standards and Ethics Authority, have released a number of consultation documents relating to the professional standards for financial advisers. Given the relevance of these consultations to tax (financial) advisers, the TPB has provided input on the proposals, highlighting the role of the TPB and the need, where possible, to minimise any regulatory overlap.
Ian R Taylor
Chair, Tax Practitioners Board