We investigated the conduct of a company tax agent and found it had breached code item 1 of the Code of Professional Conduct (Code). The Board Conduct Committee (BCC) determined the company had failed to act with honesty and integrity when it made false statements in its annual declarations and renewal of registration application by failing to disclose:

• the company’s sole director’s outstanding taxation obligations

• the sole director’s disqualification as a self-managed superannuation fund (SMSF) auditor by the Australian Securities and Investments Commission (ASIC).

The BCC also found the company had ceased to meet the registration requirements after finding its sole director, a registered tax agent, was not a fit and proper person.

The BCC also determined the sole director had breached:

• Code item 1 – you must act honestly and with integrity

• Code item 2 – you must comply with the taxation laws in the conduct of your personal affairs

• Code item 8 – you must maintain knowledge and skills relevant to the tax agent services that you provide.

The BCC determined this after finding they:

• made false statements in annual declarations and renewal applications, when they stated they did not have outstanding taxation obligations and had maintained their continuing professional education requirements

• failed to lodge 9 superannuation annual reports, over 70 personal income tax returns and over 100 business activity statements for themself and related entities by their due dates

• failed to pay or enter into a payment arrangement for a director penalty notice by its due date

• failed to disclose their disqualification as an SMSF auditor by ASIC.

The BCC decided to terminate the company’s registration with a ban on reapplying for 2 years. In making its decision, the BCC noted the serious nature of the conduct and that the evidence showed an extended failure to comply with personal tax affairs. The BCC specifically noted the lack of integrity and the fact the conduct formed an ongoing pattern of behaviour that was inconsistent with the standards expected of a tax practitioner.