Other guidance

Issued: 2 December 2021

Last modified: 2 December 2021

There are certain events that can affect your continued registration as a tax agent or BAS agent. One of these events is becoming an undischarged bankrupt. You must notify us within 30 days if you become an undischarged bankrupt. 

You are an undischarged bankrupt if you have been declared bankrupt under the Bankruptcy Act 1966 and you have not been discharged from the bankruptcy.

If you become an undischarged bankrupt or held this status at any time within the past five years, we may terminate your registration on the basis that:

  • an event affecting your continued registration occurred, or 

  • that you have ceased to meet the ‘fit and proper person’ registration requirement.

Factors considered 

The following sets out a non-exhaustive list of factors and examples of conduct and circumstances that we may consider when determining whether terminating your registration would be appropriate:

  1. your relevant conduct or circumstances that resulted in you becoming an undischarged bankrupt 

  2. your failure or delay to notify us that you, or a relevant individual, had become an undischarged bankrupt

  3. your failure to comply with any statutory requirements that apply to an undischarged bankrupt, in particular under the Bankruptcy Act 1966 and the Corporations Act 2001. For example: 

    1. failure to assist a trustee in bankruptcy (trustee) in order to manage the bankruptcy estate (for example, a failure to advise the trustee of beneficially held property)

    2. failure to lodge a statement of affairs with the trustee

    3. appropriation of monies derived from property which has vested in the trustee for your personal use

    4. failure to declare any income derived from the above property in your income tax return

    5. withdrawal of funds from a bank account which has vested in the trustee without the approval of the trustee

    6. borrowing of money in excess of amounts permitted under bankruptcy legislation without the approval of the trustee

    7. conduct in continuing to act as a director of a company, despite being prohibited from doing so under the Corporations Act 2001 as an undischarged bankrupt

  4. your failure to cooperate with or provide accurate information to other regulatory bodies (for example, the Australian Financial Security Authority and Australian Securities and Investments Commission)

  5. any extension of your bankruptcy period as a result of your failure to cooperate with the trustee or to comply with other requirements under the bankruptcy legislation (for example, the requirement to make a compulsory payment to the trustee under the Bankruptcy Act 1966 if your income exceeds a certain amount)

  6. failure to comply with the taxation laws that regulate whether certain deductions can be claimed in an income tax return by an individual who is an undischarged bankrupt under the Income Tax Assessment Act 1997 (for example, the claiming of a non-deductible tax loss that was incurred before the bankruptcy)

  7. whether you are of good fame, integrity and character, have been convicted of a serious taxation offence or an offence involving fraud or dishonesty, or have been sentenced to or served a term of imprisonment

  8. any other conduct, facts and circumstances that are considered relevant to assessing your fitness and propriety

  9. any lack of contrition or insight you demonstrated in your conduct, or understanding of the standards of professional and ethical conduct expected of tax practitioners

  10. your personal circumstances

  11. any associated risk to the public.

Further information