Luke Howarth, shadow assistant treasurer, said the recent changes to Jones’ code would be difficult for professionals to implement and would result in additional costs being passed on to consumers during a cost of living crisis.

“Deputy Treasurer Stephen Jones has launched a new attack on financial services professionals – this time targeting tax advisers,” he said in a statement released yesterday entitled: “Labour is waging local war on local accountants and bookkeepers.”

“Accountants have had little time to prepare and comply. At the busiest time of the year for many tax advisors, they have received a bureaucratic bombshell from the Albanian government.”

The changes affecting practitioners’ disclosure, confidentiality and record-keeping obligations are expected to come into effect on August 1.

They were introduced by a resolution of Jones, registered on July 2, under section 30-12 of the Tax Agent Services Act (TASA), which allows him to amend the code by statutory instrument.

News of the changes has sparked outrage in the tax community, with tax advisers criticising the lack of guidance, the approaching effective date and the extensive obligations.

Professional bodies joined together this week to write an open letter to Jones, demanding that the instrument be repealed, in order to amend the general provisions that require clients to report “any” matter that could have a significant impact on why a client does not wish to use their services.

While Jones has yet to make a public statement, Howarth agreed that the instrument should be withdrawn “urgently” to allow for further consultation with professional bodies.

“Some of these new obligations are far-reaching and may

Tony Greco, general manager of technical policy at the Institute of Public Accountants (IPA), said he was pleased the opposition recognised the impact of the code changes on accountants and was still waiting for a government response.

“We are pleased that the opposition has responded. And we are still waiting for Mr Jones to respond to our open letter and do what we have asked – and that is to withdraw the decision,” he told Accountants Daily.

Greco said the IPA would fight the changes tooth and nail if the assistant finance minister refused to act.

“We are not going to let this end,” he said. “We will use every opportunity to reverse this determination.”

“It is possible for thousands of small tax advisors to comply with this,” he said.

“In his haphazard attempt to crack down on the misconduct of a few large international accounting firms, the assistant treasurer has created chaos and confusion for the rest of the industry.”

He claimed that “hasty and bungled” over-regulation had become the norm under Labor, pointing to recent reforms to financial advice, and said only a coalition government could end over-regulation.

“Labour’s war on financial services professionals must end,” he said.

“After long-awaited reforms to cut red tape for financial advisors were botched, the Assistant Treasurer has turned his attention to attacking local accountants, bookkeepers and tax advisors. This is another rushed process, without consultation and full of errors.”