A tax agent and the tax agent company they were the sole director of, were found to no longer meet the requirements for registration after breaching multiple items of the Code of Professional Conduct (Code) including:

• Code 1 - you must act honestly and with integrity
• Code 7 - you must ensure that a tax agent service that you provide, or that is provided on your behalf, is provided competently
• Code 8 - you must maintain knowledge and skills relevant to the tax agent services that you provide
• Code 11 - you must not knowingly obstruct the proper administration of the taxation laws.

The Board Conduct Committee (BCC) found the tax agent individual and tax agent company knowingly obstructed the proper administration of taxation laws by hiring an individual they knew to have had their tax agent registration terminated by the Board, to provide tax agent services on behalf of the company.

Both the individual and the company failed to ensure a tax agent service provided on their behalf was provided competently by allowing this terminated agent to access Australian Taxation Office (ATO) taxpayer records on behalf of the company prior to the commencement of their employment with the company. The terminated agent was also allowed to deposit the company’s ATO taxpayer refunds into their own personal bank account along with a joint bank account held with the individual tax agent.

In addition, the BCC found the individual tax agent did not act honestly and with integrity by making false reports to the TPB regarding courses listed in their continuing professional education (CPE) log. The false reporting meant the agent failed to complete the minimum level of relevant CPE that meets registration requirements and did not maintain knowledge and skills relevant to the tax agent services they provide.

The BCC determined the agent did not understand the seriousness of their actions, expressed no contrition for their conduct, and displayed a blatant disregard for their obligations as a registered tax practitioner. This resulted in the finding that the agent no longer met the registration requirement that they were a fit and proper person. Accordingly, the tax agent company no longer met the eligibility requirement that its director was a fit and proper person.

The seriousness of the Code breaches by the tax agent and tax agent company resulted in the BCC terminating both registrations and prohibiting both from applying for registration for a period of 5 years.