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The country’s largest tax preparer has accused the regulator of doing nothing to clarify the code of conduct revisions beyond providing some YouTube videos and handouts.
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‘Abysmal’ TPB leaves H&R Block in dark over TASA changes
22 January 2024
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10 minute read
H&R Block has lashed the TPB for “abysmal” communication over changes to the tax agents’ code of conduct, sending YouTube videos and handouts as explainers while rejecting opportunities to engage directly with the profession it oversees.
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Director of tax communications Mark Chapman said the TPB had left the task of interpreting the legal changes for H&R Block’s 2,500 tax consultants up to him.
“When I asked for help, they responded by sending me a copy of various handouts and YouTube videos,” he said.
“But to think everyone affected will actually have the time or the inclination to work through all the stuff that they sent through in among actually dealing with clients is absurd.”
“People from the TPB need to talk with firms directly, particularly large firms where there are lots of tax agents involved, to provide the education and to be questioned about what these new policies actually mean.”
The TPB enforces the Tax Agent Services Act and oversees the registration and regulation of tax practitioners.
Changes to the TASA made by the Treasury Laws Amendment (2023 Measures No.1) Act came into effect in January, tightening the ethical standards of tax agents in the wake of the PwC scandal.
The provisions mean tax agents are banned from employing or using the services of disqualified entities to provide tax services on their behalf without approval from the TPB or supplying tax services through arrangements with a disqualified entity.
But the “loosely drafted” provisions have caused uncertainty among the profession over possible interpretations and ramifications, and getting H&R Block’s hundreds of offices to comply with the additional requirements was “causing a great deal of concern”, Mr Chapman said.
“We’ve got about 400 offices around the country. Basically, it's come down to me to synthesise the information that the TPB has put out and then present that to our staff.”
“But I can’t really deal with these considerable ambiguities.”
H&R Block had no open lines of communication with the TPB and an invitation in good faith to discuss the changes at the firm’s national conference in March was also declined.
“I simply don't understand that. We've got a lot of change in the TPB’s space, so it would really be helpful to have somebody from the board come and talk to us about it,” he said.
Mr Chapman said if the TPB’s inaction was down to relying on professional accounting bodies to do the work, “that reliance will never come”.
“The professional bodies don’t adequately represent or understand our business. It’s simply absurd to leave it up to them,” he said.
“Communication has been fairly abysmal to be honest,” he said. “Communications really need to be worked on … it leaves a lot to be desired.”
The TPB was contacted for comment.
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