A tax agent who was the sole registered director and supervising agent for a company had substantial overdue tax debts (in excess of $350,000) and failed to meet their obligations in relation to:

• income tax returns

• business activity statements

• superannuation guarantee

• fringe benefits tax 

• pay as you go. 

The agent failed to disclose these obligations to the Board in annual declarations and applications for renewal. 

In addition, the agent lodged several clients’ returns without their knowledge or consent. Many of these returns and activity statements were not prepared correctly, resulting in adjustments to be made for shortfalls and overclaimed amounts. The agent also withheld refunds from clients.

The Board Conduct Committee (BCC) found breaches of the following Code of Professional Conduct (Code) items and terminated the agent’s registration:

• 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 that a tax agent service that you provide, or that is provided on your behalf, is provided competently

• Code item 11 – you must not knowingly obstruct the proper administration of the taxation laws

• Code item 13 – you must maintain the professional indemnity insurance that the Board requires you to maintain.

Taking into account the serious nature of the conduct, the significant outstanding tax obligations and the lack of engagement with the Board, the BCC also determined that the agent should be prohibited from applying for registration for five years.