A registered tax agent breached the Code of Professional Conduct when they failed to act honestly and with integrity by:

• making false statements to the Board in registration renewal applications

• invoicing a client through an unregistered entity and allowing the refund to be processed into the unregistered entity’s bank account (which they controlled)

• failing to pass on a refund in a timely manner and not refunding the amount in full until being contacted by the Board

• failing to ensure tax agent services they provided were provided competently. Audits conducted by the ATO resulted in large amendments, shortfalls and penalties issued to clients

• trading through an entity which was deregistered by ASIC for several months and unregistered with the Board.

In addition, the tax agent failed to comply with the taxation laws in the conduct of their personal affairs by: 

• failing to lodge personal income tax returns (ITRs) by their due dates 

• failing to pay significant outstanding personal ATO debts when they were due

• making false statements in ITRs by omitting income and earnings, claiming deductions they were not able to substantiate, and claiming pay as you go (PAYG) withholding credits that were not withheld from their income

• failing to lodge returns and pay ATO debts on time for companies for which they were the sole director

• claiming more PAYG withholding credits on income tax returns than what was declared during the relevant financial year on their business activity statements.

The agent also failed to maintain professional indemnity insurance which is an ongoing registration requirement.

The Board Conduct Committee terminated the tax agent’s registration and prohibited them from applying for registration for a period of five years.