The Bill before Parliament would let the Board suspend a tax agent for 90 days without hearing from them first.
I spoke to Accountants Daily about the proposed 90 day power to suspend tax agents.
The short version. Under the Bill now before Parliament, the Board could suspend a tax agent for 90 days without first investigating and without hearing from them. That is not a gap in the drafting. The Bill switches the hearing off expressly.
For a large firm it is survivable. The clients move down the corridor.
For a sole practitioner there is no corridor. They cannot act, they have to tell every client they cannot act and 90 days is long enough to lose the practice whether or not anything is ever proven.
The narrow point
The argument is not that the Board should be slower to act on real misconduct. It is that a power this severe should carry a hearing. Five days is enough to hold one.
The Bill is not law yet. That is rather the point of saying something now.
Worth a read if you are a sole practitioner, or if you refer work to one. Thanks to Carlos Tse at Accountants Daily for the conversation.
General information only. This note was accurate when written. The law may have changed since and the note is not updated. It is not legal or tax advice, does not take account of your circumstances and must not be relied upon as a substitute for advice on your own matter. If the issue is live for you or your client, email arda@nortonquaytaxlaw.com.au for advice on the current position.