Accountants back higher standards for tax advisers
Financial advisers should be required to complete a comprehensive course in Australian taxation law, in line with their accounting counterparts who receive "no free kicks in education requirements", the Institute of Public Accountants (IPA) says.
In a submission to the Tax Practitioners Board (TPB), the IPA said current educational proposals, such as a one semester unit covering tax issues, are inadequate.
It said accountants are getting "no free kicks" in their education requirements, and nor should advisers.
"The provision of tax advice is inextricably connected with the provision of financial advice and therefore establishing appropriate education requirements including relevant education in Australian tax law is essential," IPA chief executive officer, Andrew Conway, said.
"Once a tax (financial) adviser is registered with the TPB, the adviser will be permitted to give tax advice covering any tax matter, provided it is in the course of providing financial advice. We therefore believe the duration of a course in Australian tax law should be of sufficient breadth to equip a tax (financial) adviser to adequately advise the public on tax issues.
"Simply put, the proposal of a one semester unit in tax law is inadequate unless the scope of advice is significantly restricted in line with the level of training."
"There should be a level playing field but there isn't; in the new regime, accountants have to do their RG146 with no free kicks in education requirements," Conway said.
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