AI may be able to assist in the provision of tax agent services, however, tax practitioners remain responsible for the services they provide and should be mindful of their statutory obligations under the Tax Agent Services Act 2009. 

Although AI may be able to assist in the provision of tax agent services, tax practitioners should review AI outputs before relying on them. 

AI outputs should be treated as a starting point only. Tax practitioners remain responsible for reviewing, testing and verifying the accuracy of any AI-generated content before it is used or relied upon.

The registered tax practitioner remains responsible for the advice and services they provide to clients.

It is important for tax practitioners to understand the limitations of AI tools and ensure AI outputs are assessed and supplemented by professional judgement, before being relied on. Even where AI tools make mistakes, this does not remove the tax practitioner's obligations under the Code of Professional Conduct or responsibility for advice they provide to clients. 

Tax practitioners should retain sufficient records to demonstrate that AI-generated outputs were reviewed in accordance with their processes and to support compliance with their obligations under Code when using AI in the provision of tax agent services.

The TPB is neither for nor against AI. The Guidance Statement focuses on helping tax practitioners use AI responsibly while continuing to meet their professional obligations. 

Tax practitioners must obtain permission from their client, before disclosing any information relating to a client’s affairs to a third-party. This may include entering client information into AI models and tools. You should obtain informed client consent and ensure confidentiality obligations are met.

Tax practitioners should consider their confidentiality obligation under the Code of Professional Conduct and whether the use of AI involves divulging client information to a third party.

Whether disclosure is required will depend on the circumstances, including the nature of the services being provided, how the AI tool is being used and whether its use has any implications for the tax practitioner’s obligations under the Code of Professional Conduct. Regardless of how the AI tool is deployed, tax practitioners should ensure that they continue to meet their confidentiality and privacy obligations.

The TPB supports obtaining and documenting client consent and this may be way of a signed letter of engagement, signed consent or other communications. A general authority consenting to disclosure to third parties may also be acceptable.

Transparency is recommended when AI is used for drafting or administrative work. Where client information will be divulged to a third party (which can include entering client information into AI models and tools, depending on how these tools are configured and used), permission must be obtained from each client. 

For the purposes of the Tax Agent Services Act 2009, a third party is any entity other than the client and the tax practitioner and can include AI models and tools depending on how these tools are configured and used.

The matters to include in engagement letters will depend on the circumstances, having regard to a number of factors. We suggest you refer to paragraphs 14 and 15 of our guidance on Letters of engagement.

If AI use represents a material change to service delivery or data handling practices, tax practitioners should consider updating their engagement terms and informing affected clients.

The records maintained by tax practitioners will depend on the nature of the engagement and how AI is used in providing services. While record-keeping requirements will vary according to the circumstances, tax practitioners may wish to keep records that demonstrate:

• what AI tool was used
• the purpose for which AI was used
• human review and verification undertaken throughout each step of the workflow
• the final advice or work product delivered
• client consent obtained, where relevant.

Records should be sufficient to demonstrate compliance with professional obligations, reasonable care, and the decision-making processes applied.

Tax practitioners must comply with existing record-keeping obligations under the Tax Agent Services Act 2009 and the Code of Professional Conduct, regardless of whether AI is used. The use of AI does not change those obligations.

Tax practitioners are ultimately responsible for exercising due diligence when using AI tools, including conducting appropriate review of commercial and internally developed of modified AI tools. Tax practitioners should also understand where data is stored, whether the data is retained, and whether it may be used to train AI models.

No, the TPB does not approve or endorse specific AI providers. Tax practitioners are responsible for assessing whether a particular AI tool is suitable for their circumstances.

AI-related training can count towards CPE where it is relevant to maintaining or improving a tax practitioner’s professional knowledge and skills.