An investigation was conducted into the behaviour of registered tax agent after it was found they had overdue tax obligations. The tax agent failed to comply with the Code of Professional Conduct (Code) as they did not act honestly and with integrity when they stated they had no overdue tax obligations in their annual declaration.

The agent also failed to comply with the taxation laws in the conduct of their personal affairs. Four ATO audit reports showed they did not meet employer obligations as the sole director of a company, and failed to comply with the:

• Superannuation Guarantee (Administration) Act 1992 

• Taxation Administration Act 1953 by: 

  • failing to lodge 87 business activity statements (BAS) by their respective due dates 

  • not reporting the correct PAYG withholding amounts for 58 monthly and quarterly BAS with a shortfall over $242,000.

• Income Tax Assessment Act 1936 by failing to:

  • lodge seven income tax returns by their respective due dates

  • pay tax liabilities in excess of $470,000

  • enter into a payment arrangement for outstanding debts.

In addition, the tax agent failed to comply with the Code when they did not provide an appropriate response to requests from the Board in a timely, responsible and reasonable manner.

The BCC decided to terminate the tax agent registration. Considering the serious nature of the conduct, and the significant outstanding tax obligations, the BCC also determined to prohibit the tax agent from reapplying for registration for three years.