A tax agent had failed to ensure the information included in several tax returns he lodged on behalf of taxpayers were accurate and legitimate. He also failed to ensure the tax returns were sent to and signed by each taxpayer prior to lodgement. The resulting tax refunds and correspondence from the Australian Taxation Office were also not passed on to the taxpayers.

In preparing these tax returns, the tax agent had relied solely on the information and documentation provided by a third party claiming to be acting on behalf of those taxpayers. He did not take steps to verify or obtain information directly from each taxpayer. 

The Board Conduct Committee (BCC) also found that the tax agent did not comply with taxation laws in the conduct of his personal affairs as he had some outstanding tax returns and business activity statements.

The BCC determined that in addition to the Code of Professional Conduct breaches, the agent also had breached the civil penalty provisions in the Tax Agent Services Act 2009 (TASA).

Taking into account the agent’s admission of the above behaviour and corrective actions he had taken, the BCC decided to impose the following sanctions:

• suspension of registration for four months

• an order requiring the agent to:

  • complete a course of education in the TASA within three months

  • complete a course of education in Practice management within 12 months.