AUSTRALIA TAXATION

Module 1
LEGAL, ETHICAL AND REGULATORY
FUNDAMENTALS
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Contents
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Preview 25
Introduction
Objectives
Teaching materials
Tax law environment 28
Introduction
Overview of the Australian legal system
Power to raise taxes in Australia
Progress of taxation Bills through parliament
How the courts interpret taxation law
Taxation and administrative law
Accessing the law
Ethical principles and behaviour 37
What are ethics?
Ethical principles
APES 110 Code of Ethics for Professional Accountants
APES 220 Taxation Services
Tax Practitioners Board Code of Professional Conduct
Identifying ethical dilemmas 43
Applying the conceptual framework
Facing ethical conflicts
Resolving ethical dilemmas
Steps for making a good decision
Ethical dilemma checklist
Tax practitioner obligations 47
What is the Tax Practitioners Board?
Tax agent
Business activity statement agent
Tax (financial) adviser
Tax Practitioners Board Code of Professional Conduct 54
Principles of the Tax Practitioners Board Code of Professional Conduct
Code of operations for tax (financial) advisers
Tax planning, avoidance and evasion 59
Distinguishing between terms
Promoter penalty regime

Summary and review 61

Suggested answers 63

References 65
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Module 1:

MODULE 1
Legal, ethical and
regulatory fundamentals
Study guide

Preview
Introduction
The power to raise taxes is defined in the Australian Constitution. Generally, the federal
government has the power to raise taxes, including income tax and goods and services tax (GST).
Taxation law is administrated by the Australian Taxation Office (ATO), and decisions regarding
disputes are made by the ATO, or through the court system.

All tax practitioners are subject to professional standards. These various codes operate along
similar rules and present professional obligations and steps on how to make a good ethical
decision in a professional context.

The Tax Practitioners Board (TPB) is responsible for the registration and regulation of tax agents,
business activity statement (BAS) agents and tax (financial) advisers across Australia, and each
type of registration is subject to the TPB’s Code of Professional Conduct.

The module content is summarised in Figures 1.1, 1.2 and 1.3.

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Figure 1.1: Module summary—taxation law

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Taxation law

Federal law Australian Constitution Tax planning,

avoidance and
evasion

ITAA36 Australian Promoter penalty

ITAA97 Taxation Office (ATO) regime

Administrative
Court system Appeals Tribunal
(AAT)

Federal Court High Court

Source: CPA Australia 2019.

Figure 1.2: Module summary—ethical behaviour

Making good
Codes of ethics Ethical behaviour
decisions

APES 110 TPB Code of Determine Steps for making

Professional Conduct ethical conflicts a decision

APES 220 Applying the Ethical tensions

conceptual framework between values

Source: CPA Australia 2019.

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Figure 1.3: Module summary—Tax Practitioners Board

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Tax Practitioners Board (TPB)

Types of Code of Link to

tax practitioner Professional Conduct Corporations Act

Tax agent Tax (financial)

adviser

BAS agent

Source: CPA Australia 2019.

Objectives
After completing this module, you should be able to:
• develop an understanding of the administration of the Australian tax system and
its regulatory environment;
• identify the potential ethical dilemma in a tax advisory context;
• describe various tax practitioners’ obligations based on the tax practitioners’ regime,
including the Code of Professional Conduct; and
• explain the difference between tax planning, tax avoidance and tax evasion.

Teaching materials
• Legislation and codes:
–– Income Tax Assessment Act 1936 (Cwlth) (ITAA36)
–– Income Tax Assessment Act 1997 (Cwlth) (ITAA97)
–– Taxation Administration Act 1953 (Cwlth) (TAA)
–– APES 110 Code of Ethics for Professional Accountants
–– APES 220 Taxation Services
–– Tax Practitioners Board (TPB) Code of Professional Conduct

• Glossary:
–– Following is a link to a glossary of common tax and superannuation terms. You may want
to consult the glossary when you come across an unfamiliar term: https://www.ato.gov.au/
Definitions/
–– For languages other than English, you can go to: https://www.ato.gov.au/general/
other-languages/in-detail/information-in-other-languages/glossary-of-common-tax-and-
superannuation-terms/

• CPA Australia skills list: cpaaustralia.com.au/cpa-program/cpa-program-candidates/your-

experience/skills-list (note that the employability skills are not examinable)
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Tax law environment

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Introduction
It is essential to have a good knowledge of the legal obligations and rights of taxpayers in
respect of the imposition and collection of taxes under Australian law.

Understanding the source of taxation law in Australia (made by the federal government—
see the following section), and any major legal principles, is very important. These legal
principles will also be used by the AAT and/or the federal court system when resolving disputes
or questions of law in the area of taxation.

Overview of the Australian legal system

Australia operates under a federal system of government. Power is shared between the federal
government and the various state governments under the division of powers. Of primary
importance is the Australian Constitution, which outlines the division of powers between the
federal and the state governments. The Australian Constitution gives the federal government
the power to make laws regarding the collection of income tax. The next section, ‘Power to raise
taxes in Australia’, explains the power to raise taxes in more detail.

The doctrine of the separation of powers is also important because it ensures that no one
arm of government holds all the power. Power is shared between the three separate arms of
government: the legislature, the judiciary and the executive. Under the separation of powers,
the legislature (parliament) makes the law by passing legislation. The judiciary (the courts) applies
the law to individual cases.

The executive, made up of government departments and executive authorities (of which the ATO
is one), is responsible for implementing the laws passed by the legislature.

There are federal statutes enacted by the parliament of Australia that apply to the whole of
Australia, and laws enacted by the self-governing parliaments of the Australian states and
territories. Federal statutes and subordinate legislation govern Australian taxation law, and the
federal court system applies and interprets this statute law.

Australian Constitution
The federal government has the power to make laws under the Australian Constitution.
The chief items included in the Australian Constitution are summarised as follows:
• the structure and operation of federal parliament
• the powers held by the federal government to create law
• the existence of the six Australian colonies at federation in 1901 and their recognition as
states; it also recognises the state constitutions and state laws as at 1901, and that they will
remain in place unless changed by later state or federal legislation
• the division of powers, which states how the federal and state parliaments share powers to
create law under the federal system, and the regulation of the power-sharing relationship
• the role of the executive arm of government, including the creation of federal executive
authorities, such as the ATO, and their powers
• the existence of representative democracy and an independent federal judiciary
• the creation and powers of the High Court of Australia
• the rules for amending the Constitution: it can only be amended if the change has the
support of both houses of federal parliament and then passes a referendum where it has
been agreed to by a majority of people in a majority of states.

The Australian Constitution can be easily accessed online, for example at: https://www.aph.gov.
au/About_Parliament/Senate/Powers_practice_n_procedures/Constitution.aspx.
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Power to raise taxes in Australia

As seen in the ‘Overview of the Australian legal system’ section, it is the Australian Constitution

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that contains the power of the federal government to raise taxes. The relevant sections of the
constitution are presented and discussed in this section.

Section 51(ii)
Section 51(ii) of the Constitution is a general power to make laws in respect of taxation. This is a
concurrent power because the states or territories may also make laws with respect to taxation,
except for those powers reserved exclusively for the Commonwealth (e.g. imposition of duties
and customs and excise under s. 90). Where a state or territory law conflicts with a law enacted
by the Commonwealth, the Commonwealth will prevail.

Although both the state and federal governments can in theory impose income taxes, for many
decades the arrangement has been that only the federal government does so.

Further, the federal government has coupled taxation with the power to enact grants to the
states or territories under s. 96 of the Constitution (revenue power). This means the federal
government collects the tax, and then makes grants to the state and territory governments
of funds from income tax and GST, to deliver services such as health and education.

Section 114
Section 114 of the Australian Constitution says of state powers:
A State shall not, without the consent of the Parliament of the Commonwealth, raise or
maintain any naval or military force, or impose any tax on property of any kind belonging to
the Commonwealth, nor shall the Commonwealth impose any tax on property of any kind
belonging to a State.

The states or territories also (through their residual powers) raise taxes in their jurisdiction,
such as stamp duty, land tax and payroll tax. They also provide for municipal authorities (e.g. city
councils) to impose rates and levies for local services provided (e.g. a garbage collection service).
These local councils could be regarded as a third level of government, with their own very limited
power to raise taxes.

Section 53
A taxation Bill imposes a tax and, under s. 53 of the Constitution, these particular Bills cannot
originate in, or be amended by, the Senate. They must originate in the House of Representatives.
However, the Senate may ask the House of Representatives to amend these Bills. This progress
of taxation Bills through parliament is discussed in more detail later in the module.

Sections 54 and 55
Under s. 54 of the Constitution, laws that appropriate revenues or monies for the ordinary,
annual services of the government can only deal with that appropriation.

Under s. 55 of the Constitution, laws imposing tax can only deal with the actual imposition of
taxation. Because of this, a form of assessment Act deals with assessment and collection of tax
while a ratings Act imposes that tax and determines the rate.

Assessment Acts
There are two chief assessment Acts that govern the assessment and collection of income tax in
Australia: ITAA36 and ITAA97.
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Progress of taxation Bills through parliament

A Bill is a proposed piece of legislation in draft form. It must go through a formal procedure for it
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to become enacted as law.

Step 1: Preparation of Bill

Proposals for tax legislation are considered by the prime minister and cabinet, who initiate most
proposed laws for debate in parliament. The Treasurer is the minister responsible for arranging
the preparation of Bills relating to raising revenue. The Office of Parliamentary Counsel drafts the
Bill in accordance with instructions from Treasury.

Step 2: First reading

The Bill is introduced to the House of Representatives with a first reading, where the long title is
read out. Copies of the Bill and any explanatory memoranda are given to members of parliament
and made publicly available. The Treasurer will then move that the Bill be read a second time.

Step 3: Second reading

The second reading speech explains the purpose and principles of the Bill. The second reading
debate gives an opportunity for the opposition and other non-government members to speak
before voting on whether to agree to the Bill in principle. The Bill is then examined in detail,
with the opportunity for members to suggest amendments.

Step 4: Third reading

The third reading is the final stage. If the Bill is likely to pass the House of Representatives,
then this is a mere formality. The second reading speech, any explanatory memoranda and
a record of any debate may provide assistance to the courts in determining the meaning or
intention of the Act (Acts Interpretation Act 1901 (Cwlth), s. 15AB).

Step 5: Three readings in Senate

The Bill is then presented to the Senate, where it again has three readings. However, the Senate
has no power to amend the Bill, although it may request that the House of Representatives make
an amendment. If agreement cannot be reached with the House of Representatives, the Bill is
laid aside.

Step 6: Royal assent

If the Bill passes both houses, it is then presented to the Governor-General for royal assent,
at which time it becomes an Act of parliament.

Step 7: Commencement
An Act may specify the date of commencement, but if not, the default commencement is the
28th day after receiving assent.

Figure 1.4 illustrates the passage of Bills through parliament.

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Figure 1.4: Passage of taxation Bills through parliament

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Draft bill

House of
Representatives

Federation Bill presented

Chamber
(Second debating Or
Chamber) First reading

Second reading
(in principle debate)
Second reading Possible reference to
(in principle debate)
House of
Consideration
Representatives
in detail
Consideration in detail Standing
(amendments may
(amendments may Committee
be made)
be made)

Third reading

(amendments must be
agreed to by both Houses)

Senate
Similar process to Senate committee
the House of may consider bill
Representatives

Governor-General
Assent

Law

Source: Parliament of Australia 2018, ‘Infosheet 7: Making laws’, accessed April 2019, https://www.aph.
gov.au/about_parliament/house_of_representatives/powers_practice_and_procedure/00_-_infosheets/
infosheet_7_-_making_laws.
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Retrospective taxation law

It is not uncommon for taxation law to have retrospective operation. If a law doesn’t commence
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from the date of the announcement, but from a stated date in the Act, which applies before
the law receives assent, then it is said to apply retrospectively.

The Federal Budget is a good example of retrospective operation. The Federal Budget is
delivered on a specific date in May every year, and will make announcements that may be
‘effective from the date of the Budget’ but that have not yet been enacted in law.

The prospect of a taxpayer being subject to laws that were not in force at the time of a particular
transaction can be challenging. A common retrospective situation is ‘legislation by public
announcement’, whereby the federal government publishes a statement of intention to change
a tax law with an effective date of that notice. Such a situation can result in uncertainty about
potential legislative change, for which there is little guidance and that may not ever be passed
by parliament when it is eventually drafted as a Bill.

How to amend taxation law

Governments may invite public discussion on taxation policy through bodies such as the Board
of Taxation.

This provides opportunities for stakeholders, including professional associations such as

CPA Australia, to make submissions about policy. In later stages, Treasury—which is responsible
for tax policy for the federal government—may invite public submissions in response to draft
legislation dealing with issues that are complex and may have unintended consequences.
This process means the potential impact of proposed legislation can be considered long
before the legislation is enacted.

How the courts interpret taxation law

Legislation is now the primary source of new law in Australia, but it does not automatically
override common law (though it will in circumstances where it shows a clear intention to do
so). In Australia, most tax case law involves issues of interpreting the relevant statutes, so that
affected groups, including tax advisers and tax officials, can apply the law efficiently and correctly.

Practically, this is the model by which Australia operates where most law is now made by
parliament through legislation, or the executive through subordinate legislation. This is the
case in relation to the creation and interpretation of taxation law.

Statutory interpretation
Judges are faced with the task of applying legislation to the particular case heard before them.
To apply the legislation, they must first interpret and understand it. Problems occur when the
judge has difficulty interpreting the statute.

There are a number of situations that might lead to a need for statutory interpretation:
• Ambiguity might be caused by an error in drafting, or words may have a dual meaning.
• Uncertainty may arise where the words of a statute are intended to apply to a range of
factual situations and the courts must decide whether the case before them falls into
any of these situations.
• There may be unforeseeable developments.
• The legislation may use a broad term.
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The courts can be reluctant to make significant changes to the interpretation of legislation
since this encroaches on the responsibility of parliament, which is better able to investigate new

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laws and their potential effect on the community. This is a particular consideration in relation
to taxation law.

Federal court system

The High Court of Australia has the sole judicial authority to interpret the provisions of the
Australian Constitution, including the operation of the various powers of the federal government
to create law.

It is the ultimate court of appeal, meaning that its judgment is final and conclusive. Appeal to the
High Court from lower courts is by special leave. The granting of special leave depends on the
seriousness of the issue being considered, and whether it has national significance. Special leave
is not commonly granted. Appeals concerning taxation would stem from decisions at the Federal
Court. The Federal Court is created under a parliamentary power and can only hear matters
dictated by parliament.

Questions of law concerning taxation usually originate before a single judge of the Federal Court.
They may also arise on appeal from a federal tribunal such as the AAT. There is also a right of
appeal to the Full Federal Court where a majority decision will prevail. Where the case is heard
before a single judge of the High Court, there may under certain circumstances be an appeal
to the full bench of the High Court.

Figure 1.5 illustrates the Australian federal court system.

Figure 1.5: Australian federal court system

High Court of Australia

Appeal by special leave

Full Court of Federal Court Full bench

majority decision

Federal Court

Appeals Direct appeal Non-judicial

from AAT of certain administration
on questions Commonwealth
of law only administrative
decisions

Source: CPA Australia 2019.

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As will be referred to later, in the section ‘Reading a taxation law case’, a court’s reason for its
decision is known as the ‘ratio decidendi’ of the case (commonly referred to as ‘ratio’). The principle
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of the ‘doctrine of precedent’ means that courts are bound by the ratio of courts higher in the
court hierarchy (illustrated in Figure 1.5). For instance, if the High Court previously decided that a
taxpayer in a certain situation was allowed a certain deduction under the legislation, and a case
with very similar relevant facts (involving a different taxpayer) comes before the Full Federal Court,
the latter court is obliged to arrive at a similar decision. Although courts are not bound by the ratio
of earlier decisions of courts that are not higher in the court hierarchy, they are still persuaded by
such decisions (the degree of persuasiveness is stronger where a previous decision has been made
by a court of the same level as compared to a decision by a lower-level court).

Sometimes courts might make statements in their decision that are not essential to the decision
but are made in passing. These statements are known as ‘obiter dictum’. An example of this
would be a taxpayer claiming a deduction, the court stating the expense is deductible and
stating why (ratio), but then commenting that the expense would not be deductible had the facts
been different in certain ways (obiter). Statements that constitute obiter are persuasive rather
than binding on later court decisions.

Example 1.1: Interpreting legislation

An example of where it was necessary for the courts to interpret legislation can be seen in FC of T v.
Applegate [1979] ATC 4307.

A resident of Australia is defined in s. 6(1) of ITAA36 as including a person whose domicile is Australia
unless they have a ‘permanent place of abode’ in another country. This means that individuals who
retain their Australian domicile will remain tax residents while staying overseas unless they can satisfy
the Commissioner that they have a permanent place of abode in that other country for the tax year
in question.

The Full Federal Court in FC of T v. Applegate [1979] ATC 4307 was required to decide the meaning
of the word ‘permanent’ in this context. A literal interpretation using the dictionary would mean a
taxpayer would have to abandon Australia forever. This would produce an absurd outcome because the
individual would lose their Australian domicile and the ‘domicile test’ in s. 6(1) would not be necessary
in the first place. The court looked to the purpose of the legislation and held that ‘permanent’ does
not mean everlasting in this context, but requires an enduring association with the place of abode
that is more than temporary for the year in question.

Taxation and administrative law

The ATO is responsible for collecting revenue for the federal government and is part of the
federal Treasurer’s portfolio.

The ATO administers legislation for taxes, superannuation and excise under supervision
of the Commissioner of Taxation (the Commissioner), who in turn is appointed by the
Governor‑General.

The Commissioner is granted general powers of administration under s. 8 of ITAA36 and may
delegate authority to tax officers (e.g. for the purpose of conducting audits and investigations—
see Module 11 under ‘Tax audits’).

A particularly relevant area for tax agents and advisers concerns disputes of the assessment
process—this is discussed in more detail in Module 11 under ‘Objections, reviews and appeals’.
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Taxation decisions (known as 'objection decisions') are reviewable or appealable or both under
Part IVC of the TAA. The taxpayer can seek a review or appeal (as appropriate) by either applying

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to the AAT or appealing to the Federal Court.

The Commissioner has quasi-judicial powers such as the ability to impose administrative
penalties. Guidance on the Commissioner’s views as set out in ATO-issued tax rulings may be
regarded as de facto law making where taxpayers choose not to object or litigate but rather
arrange their affairs in accordance with this view. Tax rulings are discussed further in Module 11
under ‘Australian Taxation Office guidance documents and rulings’.

Similarly, the AAT has quasi-judicial powers by hearing disputes that become binding on those
parties, although it is not a court and is not bound by its own precedent. However, the AAT
is a tribunal so it has no powers of judicial review. The taxpayer has a right to appeal to the
Federal Court on a question of law.

This is discussed in more detail in Module 11 under ‘Objections, reviews and appeals’.

Commonwealth Ombudsman
The Commonwealth Ombudsman is appointed by the governor-general as an independent
person with wide powers to investigate complaints about certain government departments
and agencies (including the ATO). A report may be made concerning the relevant agency if an
informal view or recommendation is not acted on. However, the ombudsman is usually a last
resort because they cannot overturn or remake a taxation review or decision; they can merely
make a written decision about a complaint about the agency. As far as tax matters are concerned,
the ombudsman will only deal with matters that involve public officials alleging wrongdoings in
the public sector (such as corruption and abuse of power). For most administrative tax matters,
the relevant body to contact is the Inspector-General of Taxation.

The Commonwealth Ombudsman can be accessed at: www.ombudsman.gov.au.

Inspector-General of Taxation
The Inspector-General of Taxation (IGT) is a statutory body, formed under the Inspector-General
of Taxation Act 2003 (Cwlth). It is independent from both the ATO and the TPB. Its roles are:
• To investigate complaints about the administrative actions of the ATO and TPB. Such
administrative complaints involve matters concerning the fairness and reasonableness of the
ATO or TPB in their dealings with people (which would include their policies and procedures).
Examples of administrative complaints include complaints about the timeliness of responses
from either of these bodies, the conduct of the officers of these bodies, or whether the ATO
has considered all the relevant information in an audit. Administrative complaints do not
include ones concerning a disagreement about the presence of a tax liability or the amount
of tax payable.
• To improve the administration of the tax system for all taxpayers by carrying out broad
reviews, leading to recommendations made to the ATO, TPB and the government. This is
at times linked to the first role, in that the IGT, using an analysis of complaints data,
can undertake a review on an issue relating to tax administration, which can contribute
to improvements in the tax system.

The Inspector-General of Taxation can be accessed at: https://igt.gov.au.

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Accessing the law

In Australia, all federal and state legislation, subordinate legislation in the form of regulations,
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and all reserved judgments are available freely and publicly through a variety of law databases,
both online and in physical libraries.

The most comprehensive Australian database is the Australasian Legal Information Institute
(AustLII), a comprehensive and free online legal database, accessed at: http://www.austlii.edu.
au/. AustLII is published by the law faculties of two major Australian universities and is the
primary source of both Australian law and links to the world’s legal resources. All Australian
taxation legislation is available on the AustLII database. All taxation decisions of the AAT and the
Federal Court are also available on the AustLII database. Simply enter this front page and search
for any Australian federal government or state government piece of legislation or case or browse
through the various listed databases.

ATO website
The ATO website is a very important and authoritative source for correct information on taxation
law in Australia.

Access the ATO website at: www.ato.gov.au. The search function is excellent, and the best way to
find information is to search the area or term you are looking for, and then consider the results
to link through to the relevant fact pages and information sheets.

The ATO Legal Database is published by the ATO and available at: http://www.ato.gov.
au/law/. This database provides access to much of the material the ATO uses when making
decisions. This includes tax legislation and related material, public rulings, tax-related case law,
ATO interpretative decisions and taxpayer alerts. To use the database, select from the links to
documents, or use the search function.

Reading a taxation law case

Each case heard by a judge contains a judgment and a decision. These are delivered orally by
the judge in a closed or open court. All judgments follow the same format. This is the same for
all civil law cases, including taxation cases heard in the AAT or the Federal Court.

We can use the example of a well-known AAT decision, Robyn Frances Murtagh and
Commissioner of Taxation [1984] AATA 249, to demonstrate how to read an AAT judgment:

• case citation—the case has a title and citation in the form of Robyn Frances Murtagh and
Commissioner of Taxation [1984] AATA 249. This denotes the claimant (Robyn Frances
Murtagh) versus the defendant (Commissioner of Taxation), the year the decision was made
(1984), the tribunal hearing the case (Administrative Appeals Tribunal of Australia), and the
page where it appears (249)

• court—states whether this is the first time the case has been heard (original jurisdiction)
or if it is an appeal, and if so, from which court or tribunal (e.g. from the AAT in a Federal
Court judgment)

• catchwords and the precedents used to inform the decision

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• actual judgment (the order and the decision)—the actual judgment appears about halfway
into the report. The judgment contains two important elements, which we have already

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referred to in the section ‘Federal court system’:
–– ratio decidendi—this is Latin for ‘the reason for the decision’, and it is the ratio decidendi
that may create a precedent for the future. This key element of the judgment can
sometimes be difficult to determine when reading a decision. Helpful tips are to separate
the important facts from the unimportant ones, determining what precedents were
applied in the decision, cross-checking against the points made in the catchwords and
precedent listing, and reading the judgment with later decisions that cite that judgment
in mind
–– obiter dictum—this is Latin for ‘sayings by the way’. These are additional observations on
the case itself that, although made by the judge, are not directly relevant to the judge’s
decision. They therefore carry less weight than the ratio decidendi and are not binding
as precedents.

Ethical principles and behaviour

What are ethics?
Ethics and morals are concerned with right and wrong and how conduct should be judged to
be good or bad. It is about how we should live our lives and, in particular, how we should behave
towards other people. It is therefore relevant to all forms of human activity.

Morals differ from ethics in the sense that they derive from a person’s individual beliefs and are
often linked to religious views.

They are not derived from professional ethics, which are the views and rules of the professional
organisation that an individual is a member of.

Therefore, it is perfectly possible for an individual to find an action to be justified ethically

(in terms of professional ethics) but be immoral (to their personal views).

Where an individual’s morals clash with their professional ethics, they can protest or resign—
but this will have consequences for them professionally and therefore is the hardest choice that a
professional may face. The law will provide the individual some protection if they make an ethical
protest. Where an individual follows their professional ethics, they may not be taking (to them)
the correct course of action, but they will be afforded the protection of their profession.

When developing professional ethical standards, such as the ones studied in this module,
professional bodies attempt to develop strong fundamental ethical behaviour in their members.
By doing this it is hoped that members will practise ethical decision-making and therefore have
a strong sense of what is ethically right and wrong.
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➤➤Question 1.1
Consider the following situations. Do you think the person is acting morally and in accordance
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with professional ethics?

(a) A registered tax agent uses legitimate tax planning to allow a high-income earning business
owner to only pay as much tax as a salary earner on a much lower income.

(b) A registered tax agent prepares the accounts and tax returns of a client. Unknown to the
client, the tax agent’s sister runs a competing business, but the tax agent feels that due to
their own honesty, they can keep the client’s affairs confidential.

(c) An airline pilot decides to risk an emergency landing in severe bad weather for a passenger
who is gravely ill and will die if not treated very soon.

Check your work against the suggested answer at the end of the module.

Ethical principles
All codes and standards in this module—APES 110, APES 220 and the TPB Code of Professional
Conduct—provide very similar principles (in the case of APES 110 and APES 220) or are based
around the same principles (in the TPB Code of Professional Conduct—ethical guidelines)
that give the fundamental principles all members should follow in their professional lives.
These principles are regarded as fundamental because they form the bedrock of professional
judgments, decisions, reasoning and practice.

All members who subscribe to these standards must not only know the fundamental principles,
but also apply them in their everyday work. APES 110 and APES 220 are framework- or
ethics‑based.

There are serious consequences for failing to follow them. Whenever a complaint is made
against a party to the Accounting Professional and Ethical Standards Board (APESB) standards,
failure to follow the contents of the fundamental principles will be taken into account when a
decision is made as to whether a prima facie case exists of professional misconduct. The codes
reflect the standards all bodies expect from their members.
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APES 110 Code of Ethics for Professional Accountants

The APESB publishes APES 110. APES 110 is based on the international code issued by the

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International Ethics Standards Board for Accountants (IESBA), which is commonly used by
accounting bodies internationally. (An updated version of APES 110 was released in November
2018, which is operative from 1 January 2020, but may be adopted earlier.)

APESB is formed by the main accounting bodies in Australia. Established in 2006, the board is
made up of three members—CPA Australia, Chartered Accountants Australia & New Zealand
(CA ANZ) and the Institute of Public Accountants (IPA). All members of these organisations
are bound by the standards published by the APESB.

Fundamental ethical principles of APES 110

First, the member as a professional accountant should be guided by the one overarching
principle of APES 110—to act in the public interest (para. 100.1 A1). It states:
A distinguishing mark of the accountancy profession is its acceptance of the responsibility to act in
the public interest. A Member’s responsibility is not exclusively to satisfy the needs of an individual
client or employing organisation. Therefore, the Code contains requirements and application
material to enable Members to meet their responsibility to act in the public interest (APES 110,
para. 100.1 A1).

The member should follow the five fundamental principles of APES 110 at all times.

Under para. 110.1 A1 of APES 110:

There are five fundamental principles of ethics for Members:
a. Integrity—to be straightforward and honest in all professional and business relationships.
b. Objectivity—not to compromise professional or business judgements because of bias,
conflict of interest or undue influence of others.
c. Professional competence and due care—to:
(i) Attain and maintain professional knowledge and skill at the level required to ensure that
a client or employing organisation receives competent Professional Activities, based on
current technical and professional standards and relevant legislation; and
(ii) Act diligently and in accordance with applicable technical and professional standards.
d. Confidentiality—to respect the confidentiality of information acquired as a result of
professional and business relationships.
e. Professional behaviour—to comply with relevant laws and regulations and avoid any
conduct that the Member knows or should know might discredit the profession (APES 110,
para. 110.1 A1).
 40 | LEGAL, ETHICAL AND REGULATORY FUNDAMENTALS

Example 1.2: Examples of acting unethically

The following list links each of the fundamental principles to an example of a situation where someone
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would be acting unethically.

• integrity—handing over work to a colleague that you know contains errors
• objectivity—allowing personal feelings about something to cloud your judgment
• professional competence and due care—taking on work you are not qualified to do
• confidentiality—leaving sensitive or confidential information where anyone can look at it
• professional behaviour—cheating in professional exams.

A professional has a responsibility to make ethical decisions based on honesty, integrity, objectivity and
confidentiality. As part of this, they need to manage their emotions in order to maintain professionalism,
so should not allow personal feelings to interfere with professional judgments. They must also be
aware of situations where they should request assistance if there is work they are not qualified to do
and should always check that information gathered for analysis is accurate and comprehensive.

Consider how each of the listed examples of acting unethically would affect the employability of that
person—it would certainly harm their career prospects.

Fundamental threats
As well as identifying fundamental principles, APES 110’s ethical guidelines identify five
types of threat to those principles. These threats are self-interest threats, self-review threats,
advocacy threats, familiarity threats and intimidation threats. The fundamental threats are
described in Table 1.1.

Table 1.1: Fundamental threats

Type of threat Description of threat

Self-interest The threat that a financial or other interest will inappropriately influence a Member’s
judgment or behaviour

Self-review The threat that a Member will not appropriately evaluate the results of a previous
judgment made, or an activity performed by the Member, or by another individual
within the Member’s Firm or employing organisation, on which the Member will rely
when forming a judgment as part of providing a current activity

Advocacy The threat that a Member will promote a client’s or employing organisation’s
position to the point that the Member’s objectivity is compromised

Familiarity The threat that due to a long or close relationship with a client, or employing
organisation, a Member will be too sympathetic to their interests or too accepting
of their work

Intimidation The threat that a Member will be deterred from acting objectively because of
actual or perceived pressures, including attempts to exercise undue influence over
the Member

Source: Based on APES 110 Code of Ethics for Professional Accountants, para. 120.6 A3,
accessed April 2019, https://www.apesb.org.au/uploads/home/02112018000152_APES_110_
Restructured_Code_Nov_2018.pdf.

The ethical guidelines take an ‘identify, evaluate and address threats’ approach to dealing with
ethical issues. They state that where a threat is identified, the member should assess whether
or not it is significant and then take action to remove or mitigate it. Further advice for dealing
with ethical issues is covered in the sections ‘Tax practitioner obligations’ and ‘Identifying
ethical dilemmas’.
 Study guide | 41

NOCLAR standard
The NOCLAR standard, incorporated as a new section of APES 110 in 2017, provides guidance

MODULE 1
on responding to non-compliance with laws and regulations (NOCLAR), which a professional
accountant may encounter in their professional activities. An example of where NOCLAR may
potentially apply is in the area of tax evasion.

Under NOCLAR, accountants are now enabled to set aside the APES 110 fundamental standard of
confidentiality when it is in the public interest to report non-compliance with laws and regulations,
and where the conditions for reporting NOCLAR are met. First, the non-compliance must have
a direct and material effect on the financial statements of the client or employer. Second, if the
non-compliance is not qualitative, then the non-compliance must be fundamental to the business
and its operations. There needs to be credible evidence of serious negative consequences to
employees, creditors, investors or the general public in financial or non-financial terms.

When these conditions are met, the standard not only enables, but places a responsibility upon,
all professional accountants to disclose NOCLAR to public authorities. The NOCLAR standard
came into effect in Australia on 1 January 2018.

APES 220 Taxation Services

The APESB has issued professional standard APES 220 (current version revised in July 2018).
Revisions to APES 220 have been recommended to incorporate the NOCLAR standard just
discussed. At the time of writing, APES 220 has not been updated to incorporate NOCLAR.

Paragraph 1.1 of APES 220 states:

The objectives of APES 220 Taxation Services are to specify a Member’s professional and ethical
obligations in respect of:
• fundamental responsibilities when the Member performs a Taxation Service for a Client
or Employer;
• preparation and lodgement of returns to Revenue Authorities [such as the ATO];
• association with tax schemes and arrangements;
• the use of estimates;
• false and misleading information;
• professional Engagement matters;
• Client Monies;
• professional fees; and
• documentation (APES 220, para. 1.1).

One of the topics covered in the standard is false and misleading information. Paragraphs 7.1
and 7.2 of APES 220 require members to refuse to provide taxation services if they are provided
with false or misleading information, or to make (or omit to make) a statement that is false or
misleading. Under para. 7.3, ‘Where a Member forms the view that a Taxation Service is based or
false or misleading information or the omission of material information, the Member shall discuss
the matter with the Client or Employer and advise them of the consequences if no action is
taken’. It is currently recommended that APES 220 be updated to reflect the NOCLAR standard,
and it is likely this will change the reporting of false and misleading information when it meets
the NOCLAR conditions.

All members must follow the mandatory requirements of APES 220 when providing taxation
services.
 42 | LEGAL, ETHICAL AND REGULATORY FUNDAMENTALS

The six fundamental responsibilities of APES 220 that members must follow when providing
taxation services mirror the fundamental principles that must be followed in APES 110.
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The APES 220 fundamental responsibilities are:

• public interest (the overarching principle in APES 110)
• integrity and professional behaviour
• objectivity
• independence obligations
• confidentiality
• professional competence and due care (APES 220, s. 3).

➤➤Question 1.2
Access the latest version of APES 220 Taxation Services at: http://www.apesb.org.au/uploads/
home/09072018131941_APES_220_July_2018.pdf, or by searching for it using your search engine.
Make sure you have found the most up-to-date edition (July 2018).
Answer the following questions:
(a) What is the chief requirement for a member when preparing and lodging a tax return to the
ATO on behalf of a client?

(b) What is the obligation of the member if they find the information provided by the client is
false and misleading?

Check your work against the suggested answer at the end of the module.

Tax Practitioners Board Code of Professional Conduct

The TPB Code of Professional Conduct is issued by a regulatory authority, and all tax
practitioners in Australia must comply with it if they wish to maintain their registration with
the TPB. The TPB code is found in the Tax Agent Services Act 2009 (Cwlth) (TASA).

The TPB Code of Professional Conduct covers the three types of tax practitioner—tax agents,
BAS agents and tax (financial) advisers. However, the fundamental principles of the TPB code are
the same across all three registration types. It is the application of the principles that differs.
 Study guide | 43

The 14 fundamental principles of the TPB code are based on similar concepts found in APES 110
and APES 220. The 14 principles are set out under the five categories of:

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• Honesty and integrity
• Independence
• Confidentiality
• Competence
• Other responsibilities (TPB n.d.).

Principle 4 of the TPB Code of Professional Conduct (under 'Independence') states that the
practitioner must act lawfully in the best interests of their client. This requirement equates
to the Corporations Act 2001 (Cwlth) requirement of Australian financial services (AFS)
representatives (financial advisers) to act in the best interests of their client.

The TPB Code of Professional Conduct is discussed in more detail in the later section
‘Tax Practitioners Board Code of Professional Conduct’.

Identifying ethical dilemmas

Applying the conceptual framework
APES 110 provides a conceptual ethical framework to guide decision-making for tax advisers
needing to make an ethical decision.
The conceptual framework requires Members to use their professional judgement in order to:
• identify any threats to compliance with the fundamental principles
• evaluate the significance of the identified threats
• apply safeguards to eliminate threats or reduce them to an acceptable level (CPA Australia
2014, p. 8).

Figure 1.6 demonstrates the application of the conceptual framework published in the
APES 110 standard.
 44 | LEGAL, ETHICAL AND REGULATORY FUNDAMENTALS

Figure 1.6: The conceptual framework

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Are there any circumstances or relationships

No
that create any threats to compliance with the
fundamental principles?

Proceed/continue with the

Yes professional service,
engagement or with the
employing organisation
Yes
Are these threats at an acceptable level?†

No

Are there available safeguards that would Yes Apply safeguards so that threats
eliminate threats or reduce threats to an are eliminated or reduced to an
acceptable level? acceptable level

No

Decline or discontinue the professional service

or resign from the engagement or the
employing organisation

†
‘Acceptable level’ in the Code is defined by using the third party test. It means a level at which a
reasonable and informed third party would be likely to conclude—weighing all the specific facts and
circumstances available to the Member at that time—that compliance with the fundamental principles
is not compromised.

Source: CPA Australia 2014, An Overview of APES 110 Code of Ethics for Professional Accountants, p. 7,
accessed March 2019, cpaaustralia.com.au/~/media/corporate/allfiles/document/professional-resources/
ethics/an-overview-of-apes-110-code-of-ethics.pdf?la=en.

Facing ethical conflicts

The previous section ‘Ethical principles and behaviour’ discussed the need for taxation
professionals, including tax advisers, to be ethical, and the consequences of being unethical.
The conceptual framework presented in Figure 1.6 shows tax advisers the steps to follow to
make a good ethical decision.

It is therefore important that they can spot an ethical problem and be able to deal with it
effectively and appropriately.

Many taxation services dilemmas challenge both personal integrity and business skills and
therefore a strong ethical understanding is important. We now consider potential situations
where tax advisers have to make ethical decisions, and how they should resolve them.

Ethical conflicts and conflicts of interest

Ethical conflicts are situations where two ethical values or requirements seem to be incompatible.
They can also arise where two conflicting demands or obligations are placed on an individual
tax adviser.
 Study guide | 45

A conflict of interest arises where a conflict creates a threat to the objectivity of the adviser.
This might be due to the member undertaking a professional activity for two parties where their

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interests are in conflict, or in the alternative, where the member’s interests are in conflict with a
party (APES 110, para. 210.2). While working, information or other matters may arise that mean
the adviser cannot continue to work for one party without harming another. Conflicts of interest
are not wrong in themselves, but they will become a problem if a professional continues with
a course of action while being aware of and not declaring them.

Situations where ethical conflicts may arise

Ethical conflicts occur as a result of tensions between four sets of values.
• Societal values—the law, such as taxation evasion and the grey area that is tax avoidance
(see the later section ‘Tax planning, avoidance and evasion’).
• Personal values—values and principles held by the individual.
• Corporate values—the values and principles of the organisation where the individual works,
often laid down in ethical codes.
• Professional values—the values and principles of the professional body that the individual
is a member of, often laid down in standards as discussed previously.

Where society believes that businesses are not conducting themselves correctly, laws may be
introduced to ensure a minimum level of behaviour is followed. Examples of this are laws
created to deal with tax evasion, fraud and tax avoidance.

Ethical conflicts involve unclear choices of what is right and wrong. In fact, the choice could be
what is the least wrong course of action to take. In such circumstances, there is little an individual
can do but to seek advice and trust their own instincts to make the correct choice.

Remember that laws do not necessarily help an individual to resolve an ethical issue—indeed
many members of society feel torn when their personal ethics lead them to feel following a
particular law is immoral.

Where a professional duty conflicts with statute, the advice of all the relevant professional
standards is clear—the law overrides every time.

Resolving ethical dilemmas

Tax advisers will encounter situations throughout their professional life that present them with
an ethical dilemma or conflict of interest.

Ethical conflicts may arise from:

• members asked to act contrary to taxation laws or technical and/or professional standards
• divided loyalties between colleagues and the taxation law and/or professional standards
• tax advisers having to do work beyond the degree of expertise or experience they possess
• personal relationships with other employees or clients
• gifts and hospitality being offered.

Take a look at the scenario in Question 1.3.

 46 | LEGAL, ETHICAL AND REGULATORY FUNDAMENTALS

➤➤Question 1.3
Lucy is a junior accountant in her second year of full-time employment. During Lucy’s lunch break,
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her company’s human resources manager has asked Lucy for some help. The human resources
manager has recently inherited a considerable portfolio of investment properties, shares and cash.
She would like Lucy to advise her on potential income tax and capital gains tax (CGT) liabilities.
What are the key ethical issues here?

Check your work against the suggested answer at the end of the module.

Steps for making a good decision

We have seen there are many situations that could cause ethical conflicts, ranging from the
trivial to the very serious (such as taxation fraud).

Generally, individuals should consider:

• transparency—do I feel comfortable with others knowing about my decision? Is my
decision defensible?
• effect—have I considered all parties who may be affected by the decision? Have all factors
been taken into account, such as mitigating circumstances?
• fairness—would a reasonable third party, such as a taxation authority, view the decision
as fair?

➤➤Question 1.4
Which of the following would not be a suitable question to ask yourself when resolving an ethical
dilemma in your role as a tax adviser? Explain your choice.
A Does my solution benefit my career?
B Have I thought about all the possible consequences of my solution?
C Would my colleagues and/or my clients think my solution is reasonable?
D Could I defend my solution under public scrutiny, including to the relevant taxation authorities?

Check your work against the suggested answer at the end of the module.
 Study guide | 47

Ethical dilemma checklist

The following steps suggest an approach for conflict resolution:

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• Step 1: Gather and record relevant facts.
• Step 2: Assess the ethical issues involved.
• Step 3: Decide if the issue is legal in nature.
• Step 4: Identify any fundamental principles that may be affected.
• Step 5: Identify any affected parties.
• Step 6: Consider possible courses of action.
• Step 7: If necessary, seek professional or legal advice.
• Step 8: Refuse to be associated with the conflict.

Always document all meetings, conversations and actions in relation to a particular ethical
problem as you may be required at a later date to show how you dealt with the matter.

Paragraph 110.2 A2 of APES 110 states that a member faced with such a conflict might consider
consulting certain people, but that ‘such consultation does not relieve the Member from the
responsibility to exercise professional judgement to resolve the conflict or, if necessary, and unless
prohibited by law or regulation, disassociate from the matter creating the conflict’.

Tax practitioner obligations

What is the Tax Practitioners Board?
The TPB is responsible for the registration and regulation of tax agents, BAS agents and tax
(financial) advisers across Australia. These three types of registered entities are collectively
referred to as 'tax practitioners'.

The TPB is responsible for ensuring compliance with the legislation that governs tax practitioner
registration, TASA. The TPB is also responsible for compliance with the TPB Code of Professional
Conduct. The TPB Code of Professional Conduct is discussed in the section ‘Tax Practitioners
Board Code of Professional Conduct’.

The TPB has the following responsibilities:

• administering a system to register tax practitioners, ensuring they have the necessary
competence and personal attributes
• providing guidelines and information on relevant matters
• investigating conduct that may breach the TASA, including non-compliance with the Code,
and breaches of the civil penalty provisions
• imposing administrative sanctions for non-compliance with the Code
• applying to the Federal Court in relation to contraventions of the civil penalty provisions in the
TASA (TPB 2019).
 48 | LEGAL, ETHICAL AND REGULATORY FUNDAMENTALS

Tax agent
Any individual (or partnership) who provides tax agent services for a fee or other reward must be
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registered with the TPB.

Under the TAA, taxpayers using a registered tax agent may not be liable to some administrative
penalties imposed by the ATO.

Tax agent services relate to:

• ascertaining (that is, working out) or advising about liabilities, obligations or entitlements of
entities (that is your clients) under a taxation law
• representing entities in their dealings with the Commissioner of Taxation (Commissioner)
in relation to a taxation law
• where it is reasonable to expect the entity will rely on the service to satisfy liabilities or
obligations, or to claim entitlements, under a taxation law (TPB 2018d).

Table 1.2 provides a non-exhaustive list of the types of services that may or may not constitute
a tax agent service under the TASA, if provided for a fee or reward.

Table 1.2: Examples of tax agent services

Tax agent Not a tax

Service service agent service

Preparing returns, notices, statements, applications or other X

documents about your client’s liabilities, obligations or entitlements
under a taxation law.

Lodging returns, notices, statements, applications or other documents X

about your client’s liabilities, obligations or entitlements under a
taxation law.

Assisting clients with tax concessions for expenditure incurred on X

research and development activities where the service involves the
application of taxation laws.

Preparing depreciation schedules on the deductibility of capital X

expenditure.

Preparing or lodging objections on behalf of a taxpayer under Part IVC X

of the Taxation Administration Act 1953 (TAA) against an assessment,
determination, notice or decision under a taxation law.

Giving clients advice about a taxation law that they can reasonably be X
expected to rely on to satisfy their taxation obligations.

Dealing with the Commissioner on behalf of clients. X

Applying to the Commissioner or the Administrative Appeals Tribunal X

(AAT) for a review of, or instituting an appeal against, a decision on
an objection under Part IVC of the TAA.

Reconciling BAS provision data entry to ascertain the figures to be X

included on a client’s activity statement.

Filling in an activity statement on behalf of a client or instructing them X

which figures to include.

Ascertaining the withholding obligations for employees of your clients, X

including preparing payment summaries.

Installing computer accounting software and determining default X

goods and services tax (GST) and other codes tailored to clients.
 Study guide | 49

Tax agent Not a tax

Service service agent service

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Installing computer accounting software without determining default X
GST and other codes tailored to clients.

Coding transactions, particularly in circumstances where it requires the X

interpretation or application of a taxation law.

Coding tax invoices and transferring data onto a computer program X

for clients under the instruction and supervision of a registered tax or
BAS agent.

Contracting the services of a specialist to provide advice about an X

area of taxation law that you have no expertise and cannot review
for accuracy.

Services provided by an auditor of a self-managed superannuation X

fund under the Superannuation Industry (Supervision) Act 1993.

Providing general taxation advice to clients that does not involve X

the application or interpretation of a taxation law to the client’s
personal circumstances.

General training (such as a classroom) in relation to the use of X

computerised accounting software not related to particular
fact situations.

Preparing bank reconciliations. X

Entering data. X

Source: TPB 2018, ‘Tax agent services’, accessed March 2019,

https://www.tpb.gov.au/tax-agent-services.

Business activity statement agent

With the introduction of the self-assessment regime, Pay-As-You-Go (PAYG) and GST, compliance
tasks (e.g. lodging activity statements such as the BAS) have significantly increased. The ‘registered
BAS agent’ category was introduced with a scope that is limited to the preparation and lodgment
of BAS activity statements, which may allow suitably qualified entities (e.g. bookkeepers) to perform
these tasks.

Any individual (or partnership) who provides BAS agent services for a fee or other reward must
be registered with the TPB.

BAS services include any service that relates to:

• ascertaining liabilities, obligations or entitlements of an entity that arise, or could arise,
under a BAS provision
• advising an entity about liabilities, obligations or entitlements of an entity or another entity
that arise, or could arise, under a BAS provision
• representing an entity in their dealings with the Commissioner of Taxation, and

is provided in circumstances where the entity can reasonably be expected to rely on the service
for either or both of the following purposes:
• to satisfy liabilities or obligations that arise, or could arise, under a BAS provision, or
• claim entitlements that arise, or could arise, under a BAS provision.

A BAS service also includes a service that the Tax Practitioners Board has declared, by way of a
legislative instrument to be a BAS service (TPB 2018f; see also TASA, s. 90-10).
 50 | LEGAL, ETHICAL AND REGULATORY FUNDAMENTALS

A BAS provision includes:

• GST law
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• wine equalisation tax law

• luxury car tax law
• fuel tax law
• fringe benefits tax law (relating to collection and recovery only)
• pay as you go (PAYG) withholding
• PAYG instalments (TPB 2018f; see also ITAA97, s. 995-1(1)).

Table 1.3 includes a non-exhaustive list of the types of services that may and may not constitute
a BAS service under the TASA.

Table 1.3: Examples of BAS agent services

Not a BAS
Service BAS service service

Applying to the Registrar for an ABN on behalf of a client. X

Installing computer accounting software without determining default X

GST and other codes tailored to the client.

Coding transactions, tax invoices and transferring data onto a X

computer program for clients through processes that require the
interpretation or application of a BAS provision.

Coding transactions, tax invoices and transferring data onto a X

computer program for clients through processes that do not require
the interpretation or application of a BAS provision.

Confirming figures to be included on a client’s activity statement. X

Completing activity statements on behalf of an entity or instructing X

the entity which figures to include.

General training in relation to the use of computerised accounting X

software not related to client’s particular circumstances.

Preparing bank reconciliations. X

Entering data without involvement in or calculation of figures to be X

included on a client’s activity statement.

Confirming the withholding tax obligations for the employees of X

a client.

Services declared to be a BAS service by way of a legislative X

instrument issued by the TPB.

Preparation and provision of a payment summary that may include X

reportable fringe benefits amounts and the reportable employer
superannuation contributions.

Registering or providing advice on registration for GST or X

PAYG withholding.

Services under the Superannuation Guarantee (Administration) X

Act 1992 to the extent that they relate to a payroll function or
payments to contractors.
 Study guide | 51

Not a BAS
Service BAS service service

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Determining and reporting the superannuation guarantee shortfall X
and associated administrative fees.

Dealing with superannuation payments made through a clearing X

house.

Completing and lodging the taxable payments annual report to the X

ATO on behalf of a client.

Sending a TFN declaration to the Commissioner on behalf of a client. X

Source: TPB 2018, ‘BAS services’, accessed November 2018, www.tpb.gov.au/bas-services.

Tax (financial) adviser

All AFS licensees and their representatives (we will refer to them as a ‘financial adviser’ to
differentiate terms) that provide tax (financial) advice services for a fee or other reward must
be registered with the TPB.

If a financial adviser is advising their clients on the taxation consequences of the financial advice
they provide, they are deemed to be providing a tax (financial) advice service, and must be
registered with the TPB as a tax (financial) adviser.

What is the Australian financial services licensing regime?

The AFS licensing regime for financial planners and advisers is governed through the
Corporations Act and compliance is through the Australian Securities and Investments
Commission (ASIC).

Under the AFS licensing regime, all entities or individuals providing a defined financial service
to a retail client—for example, providing advice on investing surplus monies into a managed
investment fund to an individual or couple—must be registered as either an AFS licensee or
as an authorised representative of an AFS licensee. An authorised representative can be an
individual, a body corporate, a partnership, a group of body corporates or individuals who are
trustees of a trust, or an employee or director or an AFS licensee or related body corporate.

Section 761A of the Corporations Act states that an ‘authorised representative of a financial
services licensee means a person authorised in accordance with section 916A or 916B to
provide a financial service or financial services on behalf of the licensee’.

Section 766A(1) of the Corporations Act defines a financial service as follows:

For the purposes of this Chapter, subject to paragraph (2)(b), a person provides a financial
service if they:
(a) provide financial product advice (see section 766B); or
(b) deal in a financial product (see section 766C); or
(c) make a market for a financial product (see section 766D); or
(d) operate a registered scheme; or
(e) provide a custodial or depository service (see section 766E); or
(f) engage in conduct of a kind prescribed by regulations made for the purposes of this paragraph.
 52 | LEGAL, ETHICAL AND REGULATORY FUNDAMENTALS

TPB provides the following definition:

A tax (financial) advice service consists of five key elements:
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1. a tax agent service (excluding representations to the Commissioner of Taxation)

2. provided by an Australian financial services (AFS) licensee or representative of an AFS licensee
3. provided in the course of advice usually given by an AFS licensee or representative
4. relates to ascertaining or advising on liabilities, obligations or entitlements that arise, or could
arise, under a taxation law
5. reasonably expected to be relied upon by the client for tax purposes (TPB 2018e).

Table 1.4 includes a non-exhaustive list of the types of services commonly provided by a financial
adviser and whether they constitute a tax (financial) advice service.

Table 1.4: Examples of tax (financial) advice services

Tax (financial) Tax agent

Service advice service service

Any service specified by the TPB by legislative instrument to be Yes Yes

a tax (financial) advice service.

Personal advice (as defined in the Corporations Act 2001), including Yes Yes
scaled advice and intra-fund advice, which involves the application or
interpretation of the taxation laws to a client’s personal circumstances
and it is reasonable for the client to expect to rely on the advice for
tax purposes.

Any advice (other than a financial product advice as defined in the Yes Yes
Corporations Act 2001) that is provided in the course of giving
advice of a kind usually given by a financial services licensee
or a representative of a financial services licensee that involves
application or interpretation of the taxation laws to the client’s
personal circumstances, and it is reasonable for the client to
expect to rely on the advice for tax purposes.

Factual tax information that does not involve the application No No

or interpretation of the taxation laws to the client’s personal
circumstances. Such information could be included in, but is not
limited to:
• regulated disclosures such as product disclosure statements
and financial services guides
• other products such as general marketing and promotional
materials.

Client tax-related factual information. Such information includes, No No

but is not limited to:
• payment summaries
• other documents such as annual summary of interest paid
and account statements.

General advice (as defined in the Corporations Act 2001). No No

Any service that does not take into account an entity’s relevant No No
circumstances so that it is not reasonable for the entity to expect to
rely on it for tax purposes. This includes simple online calculators as
defined in the Australian Securities and Investments Commission’s
Class Order (CO 05/1122).

Factual information provided by call centres and front line staff and No No
specialists that would not be expected to be relied upon for tax
related purposes.
 Study guide | 53

Tax (financial) Tax agent

Service advice service service

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Preparing a return or a statement in the nature of a return (to provide No Yes
this service would require registration as a tax agent).

Preparing an objection under Part IVC of the Taxation Administration No Yes

Act 1953 against an assessment, determination, notice or decision
under a taxation law.

A service specified not to be a tax agent service in Regulation 13 No No

of the Tax Agent Services Regulations 2009.

Dealing with the Commissioner of Taxation on behalf of a client. No Yes

This may include, for example, applying for a private binding ruling
on behalf of a client.

Source: TPB 2018, ‘Tax (financial) advice services’, accessed March 2019,
https://www.tpb.gov.au/tax-financial-advice-services.

Registering as a tax agent

The requirements for registration as a tax agent are as follows:
• have a primary qualification in one of certain stated fields, or in the alternative, be a voting
member of a recognised tax agent association. Note that in some cases, extensive work
experience will mean that this requirement is unnecessary
• have undertaken board-approved course/s in certain areas (this will depend on the
qualifications and work experience of the applicants). If the first requirement was fulfilled due
to having voting membership of a recognised tax agent association, then this requirement
is unnecessary
• have sufficient work experience (the amount required is dependent on the primary
qualifications of the applicant).

Tax agents are also required to meet continuing professional education requirements (TPB 2018b).

Registering as a BAS agent

The requirements for registration as a BAS agent are as follows:
• primary qualifications in bookkeeping or accounting
• have undertaken a board-approved GST/BAS course
• have sufficient relevant work experience (less hours of work experience are required where
the person is a voting member of a recognised BAS or tax agent association).

BAS agents are also required to meet continuing professional education requirements (TPB 2018c).

Registering as a tax (financial) adviser

The requirements for registration as a tax (financial) adviser are as follows:
• be, or have been within the preceding 90 days, an Australian financial services (AFS) licensee
or a representative of an AFS licensee.
• meet certain qualifications and experience requirements (TPB 2018c).

Tax (financial) advisers are also required to meet continuing professional education requirements.
 54 | LEGAL, ETHICAL AND REGULATORY FUNDAMENTALS

Tax Practitioners Board Code

of Professional Conduct
MODULE 1

Principles of the Tax Practitioners Board Code

of Professional Conduct
The TPB Code of Professional Conduct sets out 14 principles under five specialist categories.
These principles are essentially the same for all tax practitioners—tax agents, BAS agents and tax
(financial) advisers.

The TPB code principles are set out under five separate categories and are based on the law in
s. 30-10 of TASA:
Honesty and integrity
(1) You must act honestly and with integrity.
(2) You must comply with the taxation laws in the conduct of your personal affairs.
(3) If:
(a) you receive money or other property from or on behalf of a client; and
(b) you hold the money or other property on trust;
you must account to your client for the money or other property.

Independence
(4) You must act lawfully in the best interests of your client.
(5) You must have in place adequate arrangements for the management of conflicts of interest
that may arise in relation to the activities that you undertake in the capacity of a registered
tax agent or BAS agent.

Confidentiality
(6) Unless you have a legal duty to do so, you must not disclose any information relating to
a client’s affairs to a third party without your client’s permission.

Competence
(7) You must ensure that a tax agent service that you provide, or that is provided on your behalf,
is provided competently.
(8) You must maintain knowledge and skills relevant to the tax agent services that you provide.
(9) You must take reasonable care in ascertaining a client’s state of affairs, to the extent that
ascertaining the state of those affairs is relevant to a statement you are making or a thing you
are doing on behalf of the client.
(10) You must take reasonable care to ensure that taxation laws are applied correctly to the
circumstances in relation to which you are providing advice to a client.

Other responsibilities
(11) You must not knowingly obstruct the proper administration of the taxation laws.
(12) You must advise your client of the client’s rights and obligations under the taxation laws
that are materially related to the tax agent services you provide.
(13) You must maintain the professional indemnity insurance that the Board requires you
to maintain.
(14) You must respond to requests and directions from the Board in a timely, responsible and
reasonable manner (TASA, s. 30-10).
 Study guide | 55

Code of operations for tax (financial) advisers

Tax (financial) advisers are required to comply with the above obligations contained in

MODULE 1
s. 30‑10 of TASA. This is a requirement of their registration, and if it were not for the rules
around recognising other obligations, the requirements would be onerous, as tax (financial)
advisers are already subject to the provisions of another licensing regime.

A lot of the fundamental principles of the TPB Code of Professional Conduct ‘are similar to
the obligations of AFS licensees and their representatives under the Corporations Act 2001’
(TPB 2018a).

Because of this, ‘it is recognised that tax (financial) advisers who already comply with their
obligations under the Corporations Act 2001 and other relevant Australian Securities and
Investments Commission (ASIC) requirements will generally also comply with most Code
obligations’ (TPB 2018a).

Table 1.5 ‘provides a brief summary comparison of the Code and relevant obligations under
the Corporations Act 2001. This table does not aim to comprehensively cover all the relevant
obligations under the Corporations Act 2001’ (TPB 2018a).

Table 1.5: Code of Professional Conduct and Corporations Act requirements

Code of Professional Conduct principles Corporations Act 2001

1. You must act honestly and with integrity. Sections 912A, 913B, 915C, 991A, 1041E, 1041G
and 1041H
Obligations are similar. In particular, the following is noted:
• Licensees have a general obligation to ensure that the
financial services covered by their licence are provided
efficiently, honestly and fairly.
• In the course of carrying on a financial services
business, a person must not engage in dishonest
conduct (according to the standards of ordinary
people) in relation to a financial service.
• A licensee must not engage in conduct that is, in all
the circumstances, unconscionable. Further, there are
also obligations in relation to false or misleading
statements or conduct under Part 7.10 of the
Corporations Act.
• ASIC may suspend or cancel an AFS licence if no
longer satisfied that the licensee or the licensee’s
representatives are of good fame or character.

2. You must comply with the taxation laws No similar obligation exists in the Corporations Act.
in the conduct of your personal affairs.
However, under ITAA97, it is a legal obligation for all
taxpayers to comply with taxation laws for both their
personal and business tax affairs.

3. If you receive money or other property Sections 981B and 981H

from or on behalf of a client, and you The following is noted:
hold the money or other property on • The licensee must ensure that money paid into a
trust, you must account to your client client’s account satisfies certain requirements.
for the money or other property. • Money paid to the licensee by their client (or their
representative) is taken to be held in trust by the
For further information, refer to: licensee for the benefit of the client.
https://www.tpb.gov.au/holding-money- • Money held by the licensee on behalf of the client for
or-other-property-trust-information- the purchase or sale of a financial product or insurance
sheet-tpbi-152012. must be deposited into an account with an approved
foreign bank or a cash management trust on the day
it is received, or the next business day.
 56 | LEGAL, ETHICAL AND REGULATORY FUNDAMENTALS

Code of Professional Conduct principles Corporations Act 2001

MODULE 1

4. You must act in the best interests Sections 961A, 961B, 961G, 961J and 961H
of your client. The person providing personal advice to retail clients is
required to:
• act in the best interests of the client in relation to
the advice
• give priority to the interests of the client in the event
of a conflict of interest
• ensure the advice is appropriate
• warn clients if the advice is based on incomplete or
inaccurate information.

Note: Section 961B outlines steps a provider can follow for

the purpose of satisfying the best interests duty.

See also Regulatory Guide RG 175 Licensing: Financial

Product Advisers—Conduct And Disclosure—in particular
Part E—which gives guidance on ‘acting in the client’s best
interests and related obligations’.

5. You must have in place adequate Sections 912A and 961J

arrangements to manage conflicts of • Licensees must have in place adequate arrangements
interest that may arise in relation to for the management of conflicts of interest that may
the activities that you undertake in the arise (either wholly or partially) in relation to activities
capacity of a registered tax practitioner. undertaken by the licensee or a representative in the
provision of financial services.
For further information, refer to: • If there are competing interests between the advice
https://www.tpb.gov.au/code- provider and the client, the provider must give priority
professional-conduct-managing- to the client’s interests when giving advice.
conflicts-interest-tpb-information-sheet-
tpbi-192014. See also Regulatory Guide RG 181 Licensing: Managing
Conflicts of Interest.

6. Unless you have a legal duty to do so, No similar obligation exists in the Corporations Act.
you must not disclose any information
relating to a client’s affairs to a third However, it is noted that Australian Privacy Principle 6.1
party without your client’s permission. in the Privacy Act 1988 (Cwlth) requires you to not
use personal information about an individual that was
For further information, refer to: collected for a particular purpose (primary purpose) or for
https://www.tpb.gov.au/tpbi- another purpose (secondary purpose) unless the individual
322017-code-professional-conduct- has consented to the use or disclosure of the information.
confidentiality-client-information-tax-
financial-advisers.

7. You must ensure that a tax agent service Sections 912A and 961B
you provide or that is provided on your • A licensee must maintain the competence to provide
behalf is provided competently. financial services and ensure that its representatives
are adequately trained and are competent to provide
financial services.
• The person providing the advice must assess whether
they have the expertise required to provide advice on
the client’s identified subject matter. If the provider
does not have the expertise, they must decline to
provide the advice.

See also Regulatory Guide RG 104 Licensing: Meeting

the General Obligations and Regulatory Guide RG 105
Licensing: Organisational Competence.
 Study guide | 57

Code of Professional Conduct principles Corporations Act 2001

MODULE 1
8. You must maintain knowledge and skills Sections 912A and 961B
relevant to the tax agent services that • A licensee must maintain the competence to provide
you provide. financial services and ensure that its representatives
are adequately trained and are competent to provide
For further information, refer to: those financial services.
https://www.tpb.gov.au/explanatory- • If the person providing the advice does not have
paper-tpb-ep-062014-continuing- the expertise required to provide advice on the
professional-education-policy- client’s particular subject matter, they must decline
requirements-registered-tax. to provide the advice.

9. You must take reasonable care in Sections 961B and 961H

ascertaining a client’s state of affairs, • The person providing the advice must make reasonable
to the extent that ascertaining the state enquiries to obtain complete and accurate information
of those affairs is relevant to a statement relating to the client’s relevant circumstances.
you are making or a thing you are doing • If it is reasonably apparent that the information on
on behalf of the client. which the advice is based is incomplete or inaccurate,
the person providing the advice must warn the
For further information, refer to: client that:
https://www.tpb.gov.au/reasonable- – the advice is, or may be, based on incomplete
care-ascertain-clients-state-affairs-tpb- or inaccurate information relating to the client’s
information-sheet-tpbi-172013. relevant personal circumstances, and
– that the client should consider the
appropriateness of the advice before acting on it.
• If the person providing the advice does not have the
expertise required to provide advice on the client’s
particular subject matter, they must decline to provide
the advice.

10. You must take reasonable care to ensure Sections 912A, 961B and 961G
that taxation laws are applied correctly • A licensee must comply with financial services
to the circumstances in relation to which laws and take reasonable steps to ensure that its
you are providing advice to a client. representatives comply with financial services laws.
• The person providing personal advice to a retail client
For further information refer to: is required to act in the best interests of the client in
https://www.tpb.gov.au/reasonable- relation to the advice. The resulting advice must also
care-ensure-taxation-laws-are-applied- be appropriate to the client.
correctly-information-sheet-tpbi-182013.

11. You must not knowingly obstruct Sections 912A and 1310
the proper administration of the A person must not, without lawful excuse, obstruct or
taxation laws. hinder ASIC, or any other person, in the performance
or exercise of a function or power under the
Corporations Act.

There is also a general requirement that licensees must

comply with financial services laws and that AFS licensees
take reasonable steps to ensure that their representatives
comply with financial services laws.
 58 | LEGAL, ETHICAL AND REGULATORY FUNDAMENTALS

Code of Professional Conduct principles Corporations Act 2001

MODULE 1

12. You must advise your client of the Sections 912A, 961B and 961H
client’s rights and obligations under No similar obligations exist in the Corporations Act.
the taxation laws that are materially However, the following is noted:
related to the tax agent services • The person providing the advice must make
you provide. reasonable enquiries to obtain complete and
accurate information relating to the client’s relevant
circumstances.
• If it is reasonably apparent that the information on
which the advice is based is incomplete or inaccurate,
the person providing the advice must warn the
client that:
– the advice is, or may be, based on incomplete
or inaccurate information relating to the client’s
relevant personal circumstances, and
– the client should consider the appropriateness
of the advice before acting on it.
• There is a general requirement that licensees must
comply with financial services laws and that AFS
licensees take reasonable steps to ensure that their
representatives comply with financial services laws.

13. You must maintain the professional Section 912B

indemnity insurance that the Board Licensees must have arrangements for compensating
requires you to maintain. retail clients for losses or damage they suffer as a result
of a breach by the licensee or its representatives of their
For further information, refer to: obligations in Chapter 7 of the Corporations Act.
https://www.tpb.gov.au/explanatory-
paper-tpbep-052014-professional- See also Regulatory Guide RG 126 Compensation and
indemnity-insurance-requirements-tax- Insurance Arrangements for AFS Licensees.
financial-advisers.

14. You must respond to requests and Section 912C

directions from the Board in a timely, While there is no requirement to respond to the TPB,
responsible and reasonable manner. there is an obligation for licensees to respond to ASIC.

In particular, licensees must respond to requests

for information from ASIC within a reasonable time
and as directed.

Source: Adapted from TPB 2018, ‘Code comparison with the Corporations Act 2001’,
accessed March 2019, https://www.tpb.gov.au/code-comparison-corporations-act-2001.

Act in the best interests of the client

Principle 4 of the TPB Code of Professional Conduct is to ‘act lawfully in the best interests of your
client’. This directly corresponds to one of the core tenets of the AFS licensing regime, which is
the duty to act in the best interests of the client.

One of the main duties of an AFS licensee representative under the Corporations Act is the
duty—enshrined in law—to act in the best interests of the client, to give priority to the interests
of the client in relation to any conflict of interest, and to ensure that the advice given to the client
is appropriate.
 Study guide | 59

Tax planning, avoidance and evasion

MODULE 1
Distinguishing between terms
The Australian taxation legislation imposes the tax liabilities and compliance requirements that
create a threshold for legal behaviour. Deliberate non-compliance to reduce the incidence of
tax is described as either tax fraud or tax evasion.

The concept of what is or is not acceptable tax planning behaviour rarely aligns with the law.
The law is subjective and may vary over time with community attitudes. Advisers who create
legal tax planning strategies are working within the taxation law to legally and ethically minimise
taxation paid by their clients. Advisers also act within their remit to legally minimise taxation for
their client using the rules allowed for in the taxation system. This is tax planning, and it operates
within the law. This is acceptable behaviour.

But the lines blur quickly between good tax planning and unacceptable tax avoidance. It can
be difficult to distinguish between tax planning and tax avoidance because determining the
intention or spirit of the law is a subjective judgment.

Tax planning is defined as organising a taxpayer’s affairs to minimise the incidence of tax using
legal means and in a way that is not ‘artificial or contrived’. The taxpayer’s financial affairs are
optimised in such a way that a reduction in tax payable is merely incidental to, or a consequence
of, genuine investment decisions.

Example 1.3: Allowable tax planning

An example of allowable tax planning is bringing forward a capital loss on disposal of a CGT asset
that the taxpayer had already intended to sell, so as to offset it against a capital gain of the taxpayer
in that same tax year (as the CGT provisions allow a capital loss to be set off against a capital gain
in the year in determining assessable income). The purpose of the legislation is to provide relief for
realised capital gains. A tax adviser has a duty to ensure their client accesses these CGT provisions
as required for under the law.

Tax laws sometimes provide different outcomes for the same economic activity conducted
in different ways, which encourages the development of aggressive schemes to exploit what
may be unintended legal features. This has been described as tax avoidance and is based
on exploiting tax laws in a manner that is not necessarily illegal (though the anti-avoidance
provisions in the legislation often make tax avoidance illegal).

Example 1.4: Tax avoidance

An example where tax planning crosses over into tax avoidance would be where the taxpayer has a
capital gain and an unrealised capital loss on another asset that they wish to keep, whereby a sale
and immediate repurchase would realise that capital loss and reduce assessable income for the year.
This was never the intention of the legislation, since the immediate repurchase means that the taxpayer
has enjoyed a reduction in assessable income while still holding the other asset. There has been no
economic loss to the taxpayer and the sale and repurchase does not make commercial sense except
for the tax benefit obtained.

Tax evasion has been described as a ‘blameworthy act or omission’ generally requiring intent
and knowledge that it will affect the person’s tax position (Denver Chemical Manufacturing Co v.
FC of T [1949] HCA 25). An example would be deliberate non-disclosure of assessable income.
 60 | LEGAL, ETHICAL AND REGULATORY FUNDAMENTALS

Figure 1.7 shows how the line can be blurred between tax planning and tax avoidance.
MODULE 1

Figure 1.7: The line between tax planning and tax avoidance

Tax evasion
Behaviour outside the law
(Deliberate non-compliance)

Legal compliance boundary

Tax avoidance
(Use of means that, but for
the anti-avoidance provisions, Unacceptable behaviour
legally reduce tax in a manner
unintended by the legislation)

Indistinct behaviour boundary

Tax planning
(Use of legal means in a way Acceptable behaviour
intended by legislation)

Source: CPA Australia 2019.

The section ‘Identifying Part IVA’ in Module 11 examines how legislation regulates tax avoidance
chiefly through Part IVA of ITAA36.

Promoter penalty regime

The promoter penalty regime is in place in order to deter the promotion of tax avoidance and
tax evasion schemes.

The introduction of the tax (financial) adviser registration regime in 2014 was one method
of regulating the provision of taxation advice by financial advisers, who may well be potential
promoters of tax avoidance or evasion schemes. It should be noted that they may also not be
the promoters of such schemes.

Under the promoter penalty regime, a tax (financial) adviser, any other tax practitioner or any
other individual who is considered a promoter must prove that they are not a promoter of such
a scheme.

The operation of the promoter penalty scheme, relevant penalties, and any exclusions or
exceptions are discussed in the section ‘Promoter penalty regime’ in Module 11.
 Study guide | 61

Summary and review

MODULE 1
This module gave an overview of many of the important fundamentals of the Australian tax
system and principles that apply to those working in the Australian tax field. It started off by
describing the legal framework that the Australian tax system operates in. This included an
overview of the relevant parts of the Australian Constitution, as well as a description of the
legislative process of creating tax laws, and the judicial process for interpreting them. This part
also included an introduction to accessing tax laws online, and how to read tax cases.

This was then followed by a discussion regarding the ethical environment that is relevant to those
involved in the tax industry. This included an overview of the more important principles in the
ethics codes of the accounting bodies, as well as the ethics code of the TPB. These principles
were then expanded upon in discussing where ethical conflicts and conflicts of interest
potentially arise, as well as how to deal with such conflicts.

The module then discussed the roles and responsibilities of the TPB and provided a description
of the services offered by those registered by the TPB (tax agents, BAS agents and tax (financial)
advisers). This was followed by further discussion of the relevant code of conduct, which those
registered by the TPB need to abide by.

The module finished with a description of the concepts of tax planning, avoidance and evasion.
These concepts are very important for tax professionals, because while it is important for such
professionals to act in their clients’ best interests, they must also ensure that there is compliance
with the relevant laws and obligations.
MODULE 1
 Suggested answers | 63

Suggested answers

MODULE 1
Suggested answers

Question 1.1
There is never any single answer to moral questions, as different people have varying opinions on
what is ‘right’ and ‘wrong’.
(a) Whether this is moral very much depends on the perspective of the individual regarding the
role of taxation and government, and the relative tax burden different members of society
should bear. From a professional ethics point of view, minimising tax in a legal manner is
perfectly professionally ethical.
(b) Although the tax agent here might feel that they are doing nothing wrong and acting in a
moral manner, there is a potential professional ethics issue here given the potential conflict
of interest. The agent owes a duty to the client to avoid such conflicts and should find a way
to either disclose the conflict to the client and get the client to consent to its presence, or not
undertake the work for that client.
(c) The pilot may be risking the lives of everyone on board the aircraft to save the life of just one.
You could consider this unethical, but the pilot may have many years of experience in dealing
with bad weather, so they consider the risk to be low. Pilots will have their own guidelines for
dealing with these situations. Ignoring them may constitute unethical behaviour.

Return to Question 1.1 to continue reading.

Question 1.2
(a) Section 4.1 of APES 220 states that:
A Member shall prepare and/or lodge returns and other relevant documents required to be
lodged with a Revenue Authority in accordance with the information provided by a Client or
Employer, their instructions and the relevant Taxation Law (APES 220, s. 4.1).

(b) Section 7.1 of APES 220 says that in this situation:

A Member shall not provide a Taxation Service to a Client or Employer if the Member finds
that information on which the Taxation Service is to be based contains false or misleading
information or omits material information and the Client or Employer is not prepared to
appropriately amend it (APES 220, s. 7.1).

Return to Question 1.2 to continue reading.

 64 | LEGAL, ETHICAL AND REGULATORY FUNDAMENTALS

Question 1.3
MODULE 1

The issues here are professional competence and due care. Lucy is in her first two years of
working as an accountant, so it is unlikely she would have sufficient competence to calculate the
tax liabilities.

Return to Question 1.3 to continue reading.

Question 1.4
The correct answer is Option A because the best solution to an ethical dilemma should be taken
whether or not it improves your career.

Return to Question 1.4 to continue reading.

 References | 65

References

MODULE 1
References

CPA Australia 2014, An Overview of APES 110 Code of Ethics for Professional Accountants,
accessed March 2019, cpaaustralia.com.au/~/media/corporate/allfiles/document/professional-
resources/ethics/an-overview-of-apes-110-code-of-ethics.pdf?la=en.

TPB n.d., ‘The Code of Professional Conduct’, accessed April 2019, https://www.tpb.gov.au/code-
obligations.

TPB 2018a, ‘Code comparison with the Corporations Act 2001’, accessed March 2019, https://
www.tpb.gov.au/code-comparison-corporations-act-2001.

TPB 2018b, ‘Qualifications and experience for tax agents’, accessed March 2019, https://www.
tpb.gov.au/qualifications-and-experience-tax-agents.

TPB 2018c, ‘Qualifications and experience for tax (financial) advisers’, accessed March 2019,
https://www.tpb.gov.au/qualifications-and-experience-tax-financial-advisers.

TPB 2018d, ‘Tax agent services’, accessed March 2019, https://www.tpb.gov.au/tax-agent-

services.

TPB 2018e, ‘Tax (financial) advice services’, accessed March 2019, https://www.tpb.gov.au/tax-
financial-advice-services.

TPB 2018f, ‘Terms explained’, accessed March 2019, https://www.tpb.gov.au/terms-explained.

TPB 2019, ‘About the Tax Practitioners Board’, accessed March 2019, https://www.tpb.gov.au/
about-tpb.
MODULE 1