Issued: 13 August 2019
Last modified: 13 August 2019
Date of decision: 18 April 2019
We received a complaint from a former client of a tax agent claiming the tax agent had carried out fraudulent activity by:
-
making changes to their 2017 income tax returns (ITRs) without authority
-
lodging amended 2015 and 2016 ITRs without the client’s authority or knowledge.
During the investigation, the tax agent’s bank statements were reviewed. The statements showed the client’s tax refunds were deposited into this account. The statements also showed that activities of a personal nature, for example, supermarket payments, energy bill payments and school fees were withdrawn from the same account.
The Board Conduct Committee (BCC) found that the tax agent had breached the Code of Professional Conduct (Code) and did not act with honesty and integrity. In particular the agent failed to:
-
deal with clients and the Board openly and transparently
-
deal with client monies on trust consistently and with the expectations and standards required of a registered tax practitioner
-
comply with taxation laws in the conduct of their personal affairs and failed to have a payment arrangement in place with the Australian Taxation Office (ATO) for outstanding tax debts in excess of $20,000
-
take reasonable care in ascertaining a client’s state of affairs
-
advise clients of their rights and obligations under the taxation laws.
Based on the above findings, the BCC determined the agent had breached Code items 1,2, 3, 9 and 12. The tax agent’s registration was terminated and they were prohibited from re-applying for registration for two years.