The Board Conduct Committee (BCC) found a tax agent had engaged in multiple, serious breaches of the Code of Professional Conduct (Code). They also ceased to meet the registration requirements to be a fit and proper person and hold professional indemnity (PI) insurance. Based on these findings, the BCC terminated the tax agent’s registration and due to the serious and systematic nature of the conduct, the BCC applied the maximum 5-year ban from reapplying for registration.

The BCC found the tax agent breached:

• Code item 1 - you must act honestly and with integrity
• Code item 2 - you must comply with the taxation laws in the conduct of your personal affairs
• Code item 7 - you must ensure the tax agent services you provide are provided competently
• Code item 13 - you must maintain the appropriate level of PI insurance
• Code item 14 - you must respond to requests and directions from the Board in a timely, responsible and reasonable manner.

The tax agent failed to:

• act honestly and with integrity when they made false statements to the Board and falsified an invoice in relation to services provided to a client
• lodge income tax returns (ITR) and business activity statements (BAS) for themselves and related entities by their due dates
• ensure tax agent services were provided competently when they failed to:
  • lodge ITRs and BAS for multiple clients
  • advise a client they were being audited by the Australian Taxation Office 
  • respond to enquiries from clients 
• hold PI insurance that meets the Board’s requirements
• respond to numerous requests and directions from the Board.

The tax agent demonstrated a lack of integrity and a disregard for their professional obligations under the Code, which is inconsistent with the expectations of a fit and proper tax agent.