After serious Code of Professional Conduct (Code) breaches and repeated misconduct, a tax agent was found to no longer be a fit and proper person to be registered.

The Board Conduct Committee (BCC) found the tax agent breached multiple items of the Code when they:

• made false or misleading statements to the Commissioner of Taxation, by listing false superannuation auditor numbers in 23 superannuation annual returns in circumstances where they knew, or ought to have known, no audits had taken place
• failed to act honestly and with integrity by enabling an unregistered individual to circumvent registration requirements by allowing them to directly invoice clients for tax agent services and to receive client refunds directly into a personal bank account which was not supervised by the tax agent and was under the unregistered individual’s control
• failed to comply with taxation laws in the conduct of their own personal tax affairs by failing to lodge multiple income tax returns and business activity statements for themself and their related entities, by the due dates
• failed to ensure that a tax agent service they provided or that was provided on their behalf was provided competently by failing to take reasonable care in the preparation and lodgement of income tax returns for 5 clients resulting in the returns being amended by the Australian Taxation Office and the clients having tax shortfalls.

In determining it was appropriate to terminate the tax agent’s registration, the BCC noted the agent’s failure to appreciate the seriousness of their conduct and the prolonged period in which it occurred. The BCC also prohibited the tax agent from applying for registration for a period of 2 years.