CPA Australia has voiced concerns that the federal government’s proposal to extend secrecy exceptions for the Australian Taxation Office (ATO) and the Tax Practitioners Board (TPB) may undermine the integrity of the country’s tax system.
The organisation, which represents certified practicing accountants, argues that the integrity of the tax system could be compromised if taxpayer information is not adequately protected.
CPA Australia regulations and standards lead Belinda Zohrab-McConnell said that taxpayer confidence is essential for open engagement with tax regulators.
She said: “It’s vital that taxpayers have confidence in the system in which they place so much trust. The honest exchange of personal information is fundamental to upholding a fair and transparent tax system. Any loss of confidence acts to undermine public trust in the integrity of the tax system.
“Not only might individuals and businesses be more reluctant to share the personal information they previously trusted to the ATO and TPB, but this may extend to the sharing of information with their tax advisers on whom businesses and individuals rely for their tax compliance.”
She added that the current provisions already permit the ATO to share necessary information, including details related to fraud, for the general administration of tax laws.
CPA Australia, along with other accounting bodies, has jointly submitted their concerns to the Treasury.
It opposed the idea of granting delegated powers to the Minister to make subordinate legislation that would expand the secrecy exceptions without proper parliamentary oversight.
The bodies also urged that the ATO and TPB to fully use the existing exceptions before considering any extensions.
They are in favour of the ATO providing information to the Australian Transaction Reports and Analysis Centre under a specific legislative provision.
The consultation paper suggests that the ATO’s proposed sharing of information for purposes beyond tax administration will be governed by specific legislative measures.
The accounting bodies believe that implementing proposals related to the research and development tax incentive and statement of tax record could lead to more efficient processes for administrators and taxpayers.
CPA Australia partnered with Keypath Education and the Australian Financial Review, offering online short courses through the AFR Short Courses platform to improve data and AI competencies among professionals.
