Three complaints against a registered tax agent led to findings of serious misconduct by the tax agent, involving stolen tax refunds and fraudulent returns spanning several years.

Fraudulent tax returns and stolen refunds

The BCC found that the tax agent had redirected over $650,000 of his clients’ tax refunds into his personal bank accounts without their knowledge and authority. The tax refunds belonged to several clients and resulted from tax returns lodged from 2014 to 2019 years.

Board investigations showed that the agent had:

• failed to advise clients that they were entitled to refunds, instead advising they had no tax to pay and no refund was due and then retaining the refunds

• failed to provide a copy of tax returns to clients

• lodged fraudulent tax returns different to what was prepared and signed for by clients

• used clients’ cheques, given to him for paying their tax bills, to pay for his own tax debts

• advised clients to make payments to the Australian Taxation Office (ATO) that were not required and then requested the ATO to refund those payments into his bank account without the clients’ authority or knowledge.

Failure to comply with personal tax obligations

The BCC found that the tax agent had failed to:

• lodge eight income tax returns for 2011 to 2018 years by the due dates

• lodge 51 business activity statements by the due dates from 2001 to 2019 years

• pay his tax debts as and when they fell due.

Termination and five-year ban on registration

The BCC determined the agent was no longer fit and proper considering:

• the gravity of the Code of Professional Conduct (Code) breaches – in particular Code items 1 and 3

• the disregard for his clients and acting without their knowledge and authority

• the systematic behaviour that occurred over several years

• the agent’s failure to respond to our investigation notice.

Terminating the agent’s registration, the BCC imposed the maximum five-year ban on the agent from applying for registration.