What to do if a complaint is made about you

The article is relevant to members in Australia and New Zealand and was current at the time of publication.

You may well be nervous or just too busy but no matter the circumstance, never ignore a complaint against you, be it vexatious or a genuine misunderstanding.

Industry experts will tell you the same thing: you will do more harm to yourself and your business by failing to acknowledge it and make your case.

When complaints are made to CPA Australia

Last year, CPA Australia received 389 complaints with 43 members appearing before the Disciplinary Tribunal.  

Failing to respond to a complaint received by CPA Australia can lead to an additional allegation against the member. Yet many members make things worse for themselves by ignoring the complaint. 

“Talk to us,” says Katherine Psomas, General Manager Professional Conduct for CPA Australia. “And never ever bury your head in the sand.

“Always remember that it’s favourable for a member to cooperate in the investigation process, as the Disciplinary Tribunal takes this into account when deliberating.”

“Members are often scared, busy or don’t know what to do. They think, ‘I’ll leave it until tomorrow’, however, this can result in a complaint proceeding to a hearing unnecessarily.

“It then gets to a disciplinary hearing, the member walks in with evidence that exonerates them, but because they’ve never responded, there are still consequences.” notes Psomas. 

Lack of independence

A common complaint against members is one of perceived lack of independence during marital or partnership disputes. 

The disputes often involve shared entities, such as businesses or trusts, where authority and control can be contested. 

Accountants may unknowingly favour the client they’ve historically worked with, leading to allegations of bias. Even when unintentional, this perceived lack of independence can lead to disciplinary action.

Consider getting help

Jennifer Shaw, Partner at Bartier Perry Lawyers, has acted for members responding to complaints. She says that professionals who feel unfairly targeted, find it difficult to represent themselves and remain objective.

She recommends seeking legal advice, even before making the first response. “There is a risk of shooting from the hip, going on the attack or going off on a tangent, which may make matters worse.”

Shaw says professionals facing a complaint can find the process daunting but reminds them that “disciplinary processes are designed to be protective rather than punitive”.

“Any orders made are intended to provide either specific and or general deterrence to ensure that the professional does not engage in the same conduct again and or to send a wider message to the profession not to engage in such conduct.”

Recommended approach

Shaw says members can help their case by:

• Getting advice early and reflecting on mistakes to help reduce consequences.
• Considering what, if any, immediate changes can be made to prevent recurrence.
• Demonstrating contrition, insight and remorse; offering explanations, not excuses.

If a complaint is made against you:

1. Respond to CPA Australia immediately to either secure further information or explain the circumstances surrounding the complaint.
2. If the matter involves a client that may potentially seek damages, report it to your Professional Indemnity Insurer immediately.
3. Consult a lawyer with experience representing professionals facing complaints.

If you’ve been referred to a Disciplinary Tribunal, you’ll be notified well in advance and told what to expect. 

At least 20 days before the hearing, you’ll also be provided with the formal Notice, including the Casebook of Materials, which contains all the relevant information, such as the allegations and evidence to be presented by CPA Australia.

AUS only: reporting TPB breaches

In Australia, as of 1 July 2024, subsection 30–40(1) of the Tax Agents Services Act 2009 (TASA) requires registered tax agents to report significant breaches of the Code of Professional Conduct to the Tax Practitioners Board (TPB).   

Megan Bishop, Partner at Piper Alderman, says the new process makes it physically easier for accountants to report a breach, but the stakes are high.

“The hard part is making the decision. There must be reasonable grounds to report because getting that wrong either way is a breach of Code 2 in the TASA for the person making the report. 

“What many who report do not anticipate is that it is not just about making a ‘report’ and then your role is complete. More questions can be asked of you.”

Bishop recommends documenting the reasons for making or not making a report. She also says to be aware of the limitations of whistleblower protections as they do not give protection when reporting unrelated parties, even if done so anonymously.

Bishop says complaints usually start with informal inquiries and there is potential for the TPB to request more information from the complainant and the Australian Taxation Office.

If warranted, a complaint can proceed to a preliminary review, and the reported accountant is notified. (Engage fully and seek legal advice – how you respond can influence the outcome.)
It can now take up to two years, instead of six months, for a complaint to be resolved by the TPB.

A complaint can result in a clearance, warning, education, suspension or termination. (Acknowledging and accepting mistakes go a long way.)