A tax agent and their related entities had a substantial number of personal tax returns and business activity statements outstanding for over 4 years. They also had over $1.5 million in outstanding tax debt without an approved payment arrangement with the Australian Taxation office (ATO).

The tax agent further failed to disclose these outstanding tax obligations in their renewal application, thereby making a false and misleading statement to the Tax Practitioners Board (TPB).

Our investigations also showed that the agent had reported incorrect income, tax losses and credits for a related entity, resulting in significant tax shortfalls and penalties imposed by the ATO following an audit. The agent failed to respond to the ATO’s formal notice for information.

The tax agent also failed to respond to our requests for information.

Our Board Conduct Committee (BCC) determined that the tax agent failed to satisfy that they were a fit and proper person to be registered and terminated their registration due to their conduct which:

• breached the Code of Professional Conduct (Code) (Code items 1, 2 and 14)

• showed disregard to the TPB by failing to respond to our requests for information and declaring they had no outstanding tax obligations when they were aware that we had already began an investigation into their conduct

• demonstrated non-compliance with taxation laws through significant outstanding tax obligations

• exhibited recklessness and failure to uphold the integrity of the tax system by recording or reporting income and credits incorrectly

• showed disregard to the ATO by not complying with a formal notice issued by the ATO.

Taking into account the seriousness and repeated nature of the tax agent’s conduct, the BCC further prohibited them from reapplying for registration for 3 years.