Know your accountants
Looking at Canterbury newspapers, chartered accountant Paul Sheehan says he sees a lot of businesses offering accounting and taxation services.
They advertise themselves as either chartered accountants, accountants or registered tax agents. So what does each title mean?
Paul explains that chartered accountants are members of Chartered Accountants Australia and New Zealand.
‘‘To be a chartered accountant, an individual needs to complete the following: a formal degree at an approved tertiary institute, five additional educational modules and three years’ practical experience of approved employment.
‘‘But to retain the status, they need to complete 20 hours of formal training and 20 hours of informal training – or reading – each year and document the continuing education undertaken. A chartered accountant also has to comply with a Code of Ethics and can be disciplined for any breaches.’’
To offer services to the public, chartered accountants are required to have a Certificate of Public Practice.
‘‘Needless to say, chartered accountants are the most qualified and experienced persons offering accounting and taxation services to the public,’’ Paul says.
As for accountants in general, the requirements are set out in Section 15(2) of the New Zealand Institute of Chartered Accountants Act 1996. Such a person must hold a certificate, degree, diploma, registration or similar qualification relevant to the practices of accounting.
‘‘So a person practising as an accountant should as a minimum show the qualification they have on any letterhead, business card or promotional material. If they belong to a professional organisation that has the power to hear complaints and discipline them, then the name of that organisation should also be shown – although there is no legal requirement to do either,’’ Paul says.
‘‘A tax agent registered with Inland Revenue is defined in Section 34B of the Tax Administration Act as a person who prepares tax returns for at least 10 taxpayers.
‘‘A tax agent cannot be an undischarged bankrupt nor have a criminal offence for dishonesty. There are no formal qualifications required to be a tax agent.’’