The Tax Practitioners Board (TPB) has updated its explanatory paper TPB(EP) 03/2010 to reflect changes concerning professional indemnity (PI) insurance requirements made to the Tax Agent Services Act 2009 (TASA) which took effect on 30 June 2013 as a result of the Tax Laws Amendment (2013 Measures No 3) Act 2013.
On 30 June 2013, s 20-5 of the TASA was amended to include an eligibility requirement for registration and renewal of registration that applicants “maintain, or will be able to maintain, PI insurance that meets the Board’s requirements”. The purpose of the wording “will be able to maintain” is to accommodate those new applicants who are applying for registration but who, at the time of applying for registration, do not maintain PI insurance that meets the TPB’s requirements. If the applicant is granted registration, the TPB says it will generally require the agent to provide details of how they meet the TPB’s requirements within 14 days from the date they receive notification that their application for registration has been granted.
Note the updated explanatory paper supersedes the previous explanatory paper (20 December 2010) which sets out the TPB’s PI insurance requirements for registered tax and BAS agents before 30 June 2013.
[LTN 234, 3/12/13]