An individual tax agent was found by our Board Conduct Committee (BCC) to have breached the following items of the Code of Professional Conduct (Code):

• 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 4 – you must act lawfully in the best interests of your client.
• Code item 13 - you must maintain professional indemnity insurance that meets the Board's requirements.

The tax agent failed to:

• act honestly and with integrity by systematically misappropriating client funds totalling more than $2.5million
• comply with a payment arrangement with the Australian Taxation Office for an income tax debt
• act lawfully in the best interests of clients by misappropriating funds for a personal advantage or benefit; 
• maintain professional indemnity insurance.

The individual tax agent was also found to have become an undischarged bankrupt and ceased to meet the registration requirements to be a fit and proper person.

In finding that they were no longer a fit and proper person to be registered, the BCC noted that the misappropriation of client funds for personal financial gain is particularly egregious, a serious and inexcusable misuse of their position and a breach of trust. The seriousness and systemic nature of the conduct and size of funds misappropriated also demonstrated that we could not have confidence the individual would continue to uphold the ethical and professional standards required to remain registered. 

In making its decision to terminate the agent’s registration and prohibit them from applying for registration for a period of 5 years, the BCC affirmed that the Board’s role is to ensure consumer protection and that it has an objective to protect and maintain the integrity of the registered tax practitioner profession.