A tax agent has had their registration terminated after the Board Conduct Committee (BCC) found multiple breaches of the Code of Professional Conduct (Code). Investigations revealed that the tax agent breached Code item 13 when they failed to provide evidence that they were covered by a valid professional indemnity (PI) insurance policy. The tax agent also breached Code item 14 when they neglected to provide a reasonable and substantive response to the Board’s correspondence on multiple occasions. 

This case was considered with a submission regarding the conduct of a company, of which the tax agent was the director and sole supervising agent. In their role as sole director of the company, they failed to ensure the company met its obligations under the Code as the company was found to have breached: 

• Code item 2 when it failed to lodge an income tax return and multiple business activity statements on time and pay outstanding tax debts in excess of $540,000 

• Code item 13 when it failed to maintain PI insurance

• Code item 14 by failing to comply with an order previously issued by the Board and failing to respond to Board enquiries on several occasions in a timely, responsible and reasonable manner. 

Outcome 

Our role is to ensure consumer protection and we cannot allow a tax agent to continue practising and putting the public at risk without valid PI insurance. The BCC decided to terminate the tax agent’s registration on the basis they ceased to meet the tax practitioner registration requirement that they are a fit and proper person and considered a failure to comply with an order from the Board a serious issue. The tax agent’s conduct indicated a lack of regard for the Board and they did not appear to appreciate the seriousness of their behaviour. Due to the magnitude of the tax agent’s conduct, the BCC prohibited them from re-applying for registration for a period of two years.  

Given the above, the BCC also decided to terminate the company’s registration as a tax agent on the basis that it has ceased to meet the registration requirement that its director is a fit and proper person.