DBA Lawyers have published the attached article exploring the treatment clients can expect from lawyers as opposed to Tax Agents, who are subject to new onerous disclosure and reporting rules. It is important, DBA Lawyers write, that clients and advisers consider from whom to seek guidance. There are significant differences in the level of confidentiality of both instructions and advice. Also, there is a significant difference in the level of independence, of the advisor, in discharging their client duties.

The Tax Agent Services Act 2009 (Cth) (TASA) has recently been amended to include reporting provisions that require tax agents and BAS agents (Tax Agents) to track and report professional code breaches by themselves or other tax agents to the Tax Practitioner’s Board (TPB) (ie, the government body that regulates these agents). Tax Agents will soon also be required to report clients that have made false or misleading statements to the Australian Taxation Office (ATO). Thus, the choice of adviser is critical for clients to determine whether that adviser might be under an obligation to report them due to express legislative obligations and whether communications between client and adviser will remain confidential. Also, I have head of the reporting obligation being ‘weaponised’ by one Tax Agent, against another.

Lawyers are regulated and have obligations, but the thrust of them is to protect a lawyer’s independence, and protect clients – a thing the TASA changes undermine. Only legal advice from a lawyer is subject to the protection of confidentiality and legal professional privilege (LPP). Most importantly, outside of extremely limited circumstances, lawyers are not required to report on their clients. Think of the trouble ‘Lawyer X’ got into, when she disclosed confidential client information, to the Police.

DBA Lawyers’ article goes on to cover material under the following headings: