Question

1. What is a conflict of interest and how may this relate to the preparation of an individual tax return?

2. What are the responsibilities of a Tax Agent when completing a tax return for a client? Discuss with reference to the Code of Professional Conduct, the Tax Agent Services Act and the Tax Agent Services Regulations.

3. Provide a summary of the legal system in Australia in relation to Income Tax. Include in your summary a definition of ‘constitutional powers’ and ‘segregation of duties’, and outline the 3 sources of taxation law in Australia.

Answer 1

1. A conflict of interest arises when you have a personal interest or a duty to another person which conflicts with the duty owed to your client in your capacity as a registered tax practitioner.

2. The responsibilities of Tax agent when completing a tax return for a client are- a) honesty and integrity b) Independence; c) Confidentiality ; d) Competence; e) Other responsibilities which include obstructing the proper administration of the taxation laws; maintain the professional indemnity insurance that the Board requires you to maintain and advise your client of the client’s rights.

3, 3 sources of taxation law in Australia are- i) customs and excise; ii)Fringe benefit tax and iii) GST (Goods and service tax)