Following our investigations, the Board Conduct Committee (BCC) found that a tax agent had breached multiple provisions of the Code of Professional Conduct (Code). 

The BCC considered that the breaches by the agent were 'serious and systemic in nature’ and demonstrated a pattern of behaviour and lack of regard for his obligations under the taxation laws and his professional obligations as a tax practitioner. 

The conduct of the agent included:

• false declarations to us about the status of his personal tax obligations

• failure to comply with those obligations

• failure to account to a client for their tax refund over extended periods of time

• failure to respond to our multiple requests for information in a timely and responsible manner.

The BCC determined that the agent breached Codes 1 and 2 due to the following findings:

• The agent made false and misleading statements to us in three annual declarations and in an application to renew his registration. He stated he did not have any outstanding personal tax obligations or that he was voluntarily making payments toward his tax debts or under a payment plan with the Australian Taxation Office (ATO). However, at the time the agent made those statements, he had outstanding tax debts without any payment plan with the ATO or making any regular voluntary payments toward the debts.

• The agent did not comply with the taxation laws in the conduct of his own tax affairs as well as the affairs of four company and partnership entities for which he was responsible (in his capacity as a director or partner). The agent failed to lodge his own income tax returns and pay his tax debts, and also caused his related entities to not lodge multiple income tax returns and BAS when they fell due.

The BCC determined that the agent breached Code 3 when it found he did not have processes in place to promptly pass on tax refunds to clients. Following a client’s complaint to us, it was found that the agent had failed to pass on a significant refund to the client for over a year. The agent repaid the money only after we intervened.

The BCC also found that the agent breached Code 14 by failing to adequately address, or respond at all, to our multiple requests for information or to attend to his tax obligations and the payment of the outstanding refund to his client.  

The seriousness of his conduct was such that the BCC concluded that he was no longer a fit and proper person and decided to terminate his registration.