The Board Conduct Committee (BCC) investigated a registered tax agent for alleged breaches of the Code of Professional Conduct (Code). It was found that the agent had breached two Code items:

• Code item 1 (you must act honestly and with integrity) — when they:

  • knowingly lodged false business activity statements (BAS) on behalf of clients without their knowledge, in order to obtain GST refunds into their personal trust account to use for their own purposes

  • attempted to conceal refund amounts over $19,000 that were received on behalf of clients

  • failed to return money to the ATO when they should have known their clients were not entitled to it

  • made a false and misleading statement and provided falsified documents to the ATO

• Code item 2 (you must comply with the taxation laws in the conduct of your personal affairs) — when they failed to comply with two notices issued under the Taxation Administration Act 1953. The notices required over $55,000 (in relation to BAS lodged on behalf of clients) be paid to the Commissioner of Taxation by the required due date. 

Based on the Code breaches, the BCC terminated the tax agent’s registration and prohibited them from reapplying for registration for four years.