The Board Conduct Committee (BCC) decided to terminate the registration of a company tax agent as the company ceased to meet the registration requirement that each director is a fit and proper person.

Our investigation found the company’s sole director was no longer a fit and proper person as:

• they had been an undischarged bankrupt 3 times since 2000

• the Supreme Court of Victoria made findings that were detrimental to their fame, integrity and character

• an Australian Taxation Office (ATO) audit found they failed to report over $800,000 of personal income, resulting in a substantial tax shortfall and associated penalties

• they were disciplined by their professional association for, among other things, using unprofessional language and making unfounded allegations in correspondence with another party

• they were convicted of 2 counts of using a forged document in connection with obtaining GST refund credits from the ATO on behalf of a business associate that was not entitled to the credits

• they used unprofessional and offensive language in correspondence with 2 clients

• they failed to lodge numerous income tax returns and business activity statements for themself and their related entities over 3 years.

In making its decision, the BCC considered the sole director did not fully appreciate the gravity of their conduct. The BCC also expressed concern they would not remove themselves from the operation of the company given their position, including as sole shareholder. The BCC noted it would be in the best interests of the company’s staff and consumers to continue to practice under a new entity, completely removed from the company’s sole director.

The BCC also, imposed a 5-year ban from reapplying.