Discussion paper released on reasonable care in ascertaining a client’s state of affairs

The Tax Practitioners Board has released a draft discussion paper on the application of subsection s 30-10(9) of the Tax Agent Services Act 2009.  

Item 9 provides that registered tax and BAS agents must take reasonable care in ascertaining a client’s state of affairs, to the extent that ascertaining the state of those affairs is relevant to a statement the agent is making or a thing the agent is doing on behalf of the client.

The Board encouraged members to provide practical examples of situations that are encountered on a day to day basis relating to business as a tax practitioner, which would appear to have relevance to the application of Item 9. The Board will incorporate relevant examples that are provided into its guidance material.

Examples and comments are being invited on issues identified in the draft discussion paper. The Board also seeks feedback on any additional issues involving the application of Code Item 9 that are not already raised in this discussion paper.

The due date for submissions to the Board is 15 December 2011. If you have any comments on the discussion paper, please send them to Tax Group by 9 December 2012.

Article last updated 10 February 2012