TPB to leverage breach reporting in compliance programs for 24-25
Recent reforms such as mandatory breach reporting will enable the the Tax Practitioners Board to focus on intelligence and data-driven decision making, according to the TPB annual report.
The Tax Practitioners Board completed 2,283 risk assessments during the 2024-24 year, reaching 85 per cent of its target of more than 2,700 completed assessments, according to its latest annual report.
The risk assessments were based on 918 complaints and 1,365 case leads.
In its report published yesterday, the TPB said it was increasing its focused on intelligence and data-driven decision-making.
"Going forward, this will be better enabled by law reforms such as mandatory breach reporting and the extension of whistleblower provisions," it said.
The report noted that complaints already drive a significant amount of its compliance work currently, with just under half of its inbound work resulting from reviews of complaints.
"Complaints mainly come from public sources and allow us to work with direct intelligence about behaviours and risks in the industry which impact clients and the broader community. We use these insights to shape our guidance and compliance strategies," it said.
The TPB said it improved its risk and intelligence capability during 2023-24, seeking to increase resourcing and improve capability by onboarding additional key and specific skillsets.
"However, this was delayed due to budgetary constraints and onboarding delays, which in turn impacted our ability to reach our target," it said.
"We continue to work to adapt, improve and automate our business systems, streamline the incorporation of third-party data, and readily identify and categorise emerging behavioural and conduct issues."
Commenting in the report, TPB chair Peter de Cure said the last 12 months had seen "unprecedented scrutiny of the tax profession" and resulted in reforms to the Tax Agent Services Act 2009.
“These reforms aim to modernise and strengthen the TPB’s regulatory framework, enhance consumer protection by strengthening integrity in the profession and improve the efficiency and effectiveness of the TPB’s operations,” de Cure said.
“They help build confidence in the tax profession as well as the broader tax and regulatory systems.”
De Cure said the TPB's expanded compliance program was another vital element in maintaining the tax system's integrity and ensuring trust and confidence in the profession.
“The program protects consumers and supports honest and ethical tax practitioners by addressing those in the profession who fail to meet the required standards,” he said.
“We understand that their actions create an unfair playing field and put clients and the integrity of the tax system at risk. We have taken swift action against unregistered preparers and those who pose significant risks to the public and the tax system.”
For 2024–25, the TPB noted it would undertake targeted compliance programs to address systematic risks.
The first compliance program would focus on the personal taxation obligations of tax practitioners and would be set to bolster the number of completed compliance activities while reducing a broader, systemic risk in tax practitioner behaviour that has been identified by both the TPB and ATO.
Over 2023–24, the TPB completed 483 compliance cases, which was approximately 57 per cent of the target of more than 850 completed cases.
De Cure said the TPB would continue to assist the profession under the new obligations with the draft code determination guidance to ensure that the final guidance is both practical and supports tax practitioners.
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