A Board Conduct Committee (BCC) investigation revealed a tax agent’s serious breaches of the Code of Professional Conduct (Code) including:

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

• Code item 11 – you must not knowingly obstruct the proper administration of the taxation laws.

Our investigation found the tax agent breached Code items 1 and 11 when they made false and misleading statements to the Commissioner of Taxation. The agent had lodged multiple self-managed superannuation fund (SMSF) annual returns to the Australian Taxation Office (ATO), claiming the funds had been audited by a registered SMSF auditor when this was not the case. Following the ATO’s request for further information, the agent also provided 12 falsified audit reports, 9 of which contained the forged signature of the SMSF auditor.

On the basis of the above Code breaches, the BCC determined the agent had ceased to meet the tax practitioner registration requirement to be a fit and proper person. The BCC considered the nature of the conduct and noted it was serious and appalling behaviour that occurred over a prolonged period, and it demonstrated a disregard for taxation laws. 

Based on these findings and taking into account the serious and repeated nature of the tax agent’s conduct, the BCC decided to terminate the tax agent’s registration and impose a 5-year non-application period. The BCC noted its role is to ensure consumer protection and that it has an objective to protect and maintain the integrity of the registered tax practitioner profession.