Tax Agent

Issued: 14 November 2022

Last modified: 14 November 2022

Date of decision: 25 August 2022

An individual tax agent was subject to disciplinary action by the Australian Securities and Investments Commission (ASIC) in the form of a court enforceable undertaking (CEU). The Federal Court subsequently found that the tax agent had deliberately sought to avoid properly complying with the terms of the CEU. 

The tax agent was also the sole director of a company tax agent.  

The tax agent failed to disclose this disciplinary action by ASIC in their individual and company registration renewal applications and annual declaration forms. The tax agent further made a false statement in these forms that there was no matter affecting their good fame, integrity and character. 

Our investigations also revealed that the tax agent failed to lodge a total of 27 tax returns and 64 business activity statements, which included personal and associated entities, by their respective due dates. The tax agent again failed to disclose these outstanding tax obligations in their individual and company tax agent registration renewal applications and annual declarations. 

The Board Conduct Committee (BCC) found that the tax agent breached items 1 and 2 of the Code of Professional Conduct.  

The BCC also noted that the agent made false and misleading statements to 2 regulators – ASIC and the Tax Practitioners Board. 

Based on the above findings, the BCC determined that the tax agent ceased to be a fit and proper person. 

Accordingly, the BCC decided to terminate the tax agent’s registration and ban them from reapplying for registration for a period of 2 years. 

The BCC also terminated the tax agent registration of the company and imposed a 2-year ban.