An individual tax agent had allowed his company tax agent to lodge over 400 tax returns and 50 business activity statements (BAS) for clients while he was suspended from providing tax agent services. There was no other supervising registered individual tax agent for the company. 

The individual agent’s registration was suspended by the Board Conduct Committee (BCC) in July 2019 for a period of six months, for conduct involving failure to maintain knowledge and skills relevant to tax agent services he provided and not responding to Board requests for information. The BCC had also ordered the agent to complete 100 hours of continuing professional education that meets the Board’s requirements and a course of education, and to provide evidence of completion to the Board. 

The agent failed to comply with the order and also failed to respond to follow-up requests from the Board.

Evidence from the Australian Taxation Office showed that during the period of the individual agent’s suspension, the company agent continued to lodge tax returns and BAS on behalf of its clients. The company had not notified the Board of the appointment of any other registered individual tax agent to carry out supervision to ensure competent tax agent services were provided to its clients while the individual agent’s registration was suspended.

The BCC determined that the individual agent was no longer a fit and proper person as he:

• provided tax agent services while suspended, or allowed the company to lodge tax returns and BAS on behalf of clients without adequate supervisory arrangements in place, or

• failed to inform the Board of any change in supervisory arrangements for the company agent for the period of his suspension.

In terminating the individual agent’s registration and banning him from applying for registration for the maximum five-year period, the BCC noted that the agent:

• posed a significant risk to the public for allowing the company agent to lodge a significant number of client tax returns and BAS without adequate supervisory arrangements in place

• showed a blatant disregard for the Board by repeatedly failing to comply with its requests and directions.