The Tax Practitioners Board has issued the following Draft Information Sheets:
- Having adequate arrangements for managing conflicts of interest for tax (financial) advisers – Exposure draft of TPB Information Sheet on Item 5 of the Code of Professional Conduct: TPB(i) D35/2016. Code Item 5 requires registered tax (financial) advisers (and tax and BAS agents) to have adequate arrangements in place for the management of conflicts of interest that may arise in relation to the activities that they undertake in their capacity as a tax (financial) adviser. However, the Code does not apply to the conduct of a tax (financial) adviser when providing financial services (as opposed to tax (financial) advice services). Explains the obligations of Code Item 5 and the consequences for failing to comply with Code Item 5.
- Reasonable care to ensure taxation laws are applied correctly for tax (financial) advisers – Exposure draft of TPB Information Sheet on Item 10 of the Code of Professional Conduct: TBP(I) D34/2016. Code Item 10 requires registered tax (financial) advisers (and tax agents and BAS agents) to take “reasonable care” to ensure that taxation laws are applied correctly to the circumstances in relation to which advice is provided to a client. However, the Code does not apply to the conduct of a tax (financial) adviser when providing financial services (as opposed to tax (financial) advice services). Explains the obligations of Code Item 10 and the consequences for failing to comply with Code Item 10.
- Reasonable care to ascertain a client’s state of affairs for tax (financial) advisers – Exposure draft of TPB Information Sheet on Item 9 of the Code of Professional Conduct – TPB(I) D33/2016 – Code Item 9 requires registered tax (financial) advisers (and tax agents and BAS agents) to 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 they are making or a thing they are doing on behalf of the client. However, the Code does not apply to the conduct of a tax (financial) adviser when providing financial services (as opposed to tax (financial) advice services). Explains the obligations of Code Item 9 and the consequences for failing to comply with Code Item 9.
- Acting lawfully in the best interests of clients for tax (financial) advisers – Exposure draft of TPB Information Sheet on item 4 of the Code of Professional Conduct: TPB(I) D32/2016. Code Item 4 provides that tax (financial) advisers must act lawfully in the best interests of their client. Acting “in the best interests of your client” has been held to mean acting in a representative character in the exercise of the tax (financial) adviser’s responsibility to the client. This requires a tax (financial) adviser to advance and protect their client’s interests to the best of their ability, in all circumstances. Explains the obligations of Code Item 4 and the consequences for failing to comply with Code Item 4.
COMMENTS are due by 11 July 2016.
[LTN 100, 26/5/16]