The Tax Practitioners Board (TPB) on Fri 7.3.2014, released for comment Exposure Draft Information Sheet TPB(I)D20/2014 (What is a tax (financial) advice service?).
From 1 July 2014, entities that provide tax (financial) advice services for a fee or other reward may start registering with the TPB. The Draft Information Sheet aims to assist entities to determine if they are providing a tax (financial) advice service and whether they need to register with the TPB. The Board notes that whether a particular service is a tax (financial) advice service is a question of fact. This means that each service will need to be considered on a case-by-case basis having regard to the facts and circumstances surrounding the provision of the service.
The Board also released the following Exposure Draft Explanatory Papers:
- TPB (EP) D5/2014 (Proposed continuing professional education policy requirements for registered tax (financial) advisers) – sets out the Board’s proposed CPE requirements for tax (financial) advisers who will be able to register with the TPB from 1 July 2014. Further, it provides guidance to registered tax (financial) advisers on meeting their obligations under the Tax Agent Services Act 2009, including the Code of Professional Conduct from 1 July 2014.
- TPB(EP) D6/2014 (Proposed professional indemnity insurance requirements for tax (financial) advisers) – the TPB says it will administer the PI insurance requirement to maximise its potential to achieve the policy objective. To achieve its objective, the TPB proposes to take a staged approach to administering these requirements, including a period of implementation. If a tax (financial) adviser has a current PI insurance policy that does not meet the TPB’s requirements, the policy can continue during the implementation period (1 July 2014 to 31 December 2016). However, upon lapse of that policy or by 1 January 2017, whichever occurs first, a tax (financial) adviser must obtain a policy that complies with the TPB’s requirements.
COMMENTS are due by 6 April 2014.
[LTN 45, 7/3/14]