An Assessment of the Code of Professional Conduct Under the Tasa 2009 - Six Years on
48 Pages Posted: 17 Oct 2017
Date Written: 2017
Abstract
A significant body of research has developed over the last sixty years concerning the factors that influence and impact taxpayer compliance. In particular, a number of recent studies have examined tax practitioners’ ethical behaviour and the implications this has for taxpayer compliance. However, fewer studies have conducted systematic empirical research into tax practitioner ethics in Australia, and more specifically with regards to the Code of Professional Conduct under the Tax Agent Services Act 2009 (Cth), since its operation from March 2010.
As tax practitioners lodge returns on behalf of approximately 75% of Australian individual taxpayers, there is great potential for them to influence the compliance landscape. Failure to investigate the discrepancies between tax practitioner ethics/practices and those stipulated in the Code of Professional Conduct could potentially result in professional malpractice and excessive revenue leakage for the government. Consequently, this preliminary study addresses this research gap by specifically investigating tax practitioners’ level of commitment to, and compliance with, the Code of Professional Conduct.
The research study conducted both a quantitative and qualitative analysis of data obtained directly from Australian tax practitioners. The findings revealed that tax practitioners were generally supportive of the professional standards under the code, but the findings were more qualified with regard to the appropriateness and knowledge of penalties under the code. The results were also mixed with regard to other ethical issues, such as the outsourcing and transfer of client information.
The suggested tax policy implications stemming from the study include: the reintroduction of compulsory engagement letters; clear guidelines regarding the maintenance of in‑house tax practitioner guidelines at all levels; introduction of protocols and standards for data security and outsourcing of services; improving the education and training of tax practitioners with regard to penalties; and consideration of the possible “black listing” of agents in public documents who commit serious offences under the code.
These findings provide useful information for the Tax Practitioners Board, professional tax and accounting organisations and the Australian taxation authority.
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