Chartered Accountants Australia and New Zealand (CA ANZ) has announced its support for proposed reforms to expand the Tax Practitioners Board’s (TPB) enforcement powers.
However, the accounting body called for tighter safeguards around the board’s suspension powers.
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In a submission to Treasury on draft regulations and determinations accompanying the reforms, CA ANZ said the expanded toolkit would allow the TPB to take more targeted action against different forms of misconduct.
The body also called for amendments to ensure interim suspension powers are used only where there is an immediate risk.
CA ANZ Tax, Superannuation and Financial Services leader Susan Franks said: “CA ANZ supports the expansion of the TPB’s sanctions toolkit. A broader range of sanctions will help ensure the TPB has proportionate and targeted responses available for different types of misconduct.
“The TPB’s proposed interim suspension power must be reserved for the most exceptional circumstances.
“Where a practitioner can be suspended without first being afforded natural justice, the threshold for exercising that power should be limited to cases involving an imminent risk of serious harm.
“Without that safeguard, practitioners could suffer significant and potentially irreversible damage to their business and reputation.”
CA ANZ said it looked forward to working with Treasury and the TPB to ensure the reforms balance enforcement with procedural fairness.
CA ANZ recently backed the Australian Government’s proposed consumer protection reforms, calling them a “significant response” to industry gaps.
The measures followed the collapse of the Shield and First Guardian Master funds, which wiped out A$1bn ($716m) in retirement savings and affected 12,000 Australians.
