Issued: 11 June 2022
Last modified: 11 June 2021
Date of decision: 1 April 2021
After being referred to us by the Australia Taxation Office (ATO), a tax agent has had their registration terminated on the grounds that they were not a fit and proper person to be registered as a tax agent. Our investigations into the conduct of the tax agent revealed they breached multiple provisions of the Code of Professional Conduct (Code). They failed to:
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comply with their personal tax obligations; and
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respond to requests and directions from the Board in a timely, responsible and reasonable manner.
The Board Conduct Committee (BCC) determined that the tax agent also breached Code items 2 and 14 when they did not comply with the taxation laws in the conduct of their personal affairs by failing to:
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lodge their income tax returns (ITRs) for the 2016, 2017, 2019 and 2020 income tax years
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lodge their annual GST activity statement for the period ending 30 June 2016
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pay or address their taxation debt of $3,090.90
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complete and pass courses covering the Tax Agent Services Act 2009 (TASA) and the Code and provide written evidence to the Board demonstrating they had successfully completed it
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respond to requests and directions from the Board in a timely, responsible and reasonable manner.
This case was considered with a submission regarding the conduct of a company that the tax agent was the sole director of. The BCC established that the company breached Code items 2 and 14 when it did not comply with the taxation laws in the conduct of its affairs by failing to:
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lodge its ITRs for the 2019 and 2020 income years
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lodge its business activity statements (BAS) for the four quarterly periods ending 31 March 2020 to 31 December2020 (inclusive)
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lodge its BAS for the quarterly periods ending 30 September 2018 to 31 December 2019 (inclusive)
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pay all outstanding tax liabilities in full
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respond to requests and directions from the Board in a timely, responsible and reasonable manner.
The BCC decided to terminate the company as a tax agent in accordance with the TASA, as the company no longer met a registration requirement that all of its directors are fit and proper persons.
In making its decisions, the BCC noted 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.