A tax agent has had their registration terminated and is banned from reapplying for the maximum five-year period as the Board Conduct Committee (BCC) found they are no longer a fit and proper person. 

An investigation into the tax agent found they had engaged in multiple serious breaches of the Code of Professional Conduct (Code). This included:

• making repeated false statements in their annual declarations and a registration renewal in relation to their outstanding tax debts

• preparing and lodging income tax returns (ITRs) and business activity statements (BAS) for multiple taxpayers where they included their own bank account details to receive client refunds from the Australian Taxation Office (ATO), without the knowledge or authority of the taxpayers

• failing to lodge ITRs and BAS in their individual capacity, and in their capacity as a trustee, over multiple financial years

• failing to pay or enter into payment arrangements with the ATO to pay outstanding tax debts

• receiving client tax refunds without their permission or knowledge and misappropriating client funds in excess of $55,000 for their own benefit

• failing to respond to requests from the Board on multiple occasions.

In making its decision to terminate the tax agent’s registration and impose the maximum ban on re-applying, the BCC noted that the tax agent’s conduct was deliberate and demonstrated a lack of integrity and a disregard of their professional and ethical obligations under the Code and other tax laws. The tax agent’s conduct in misappropriating tax refunds was not an isolated incident. It impacted multiple taxpayers and there was no evidence they made any attempts to return the unauthorised tax refunds to the ATO or to their clients. This clearly demonstrates the significant risk they pose to the public.