We investigated a tax agent and found they had breached multiple items of the Code of Professional Conduct (Code). The non-compliance included failure to: 

• lodge a substantial number of income tax returns and business activity statements for themselves and their related entities over a 6-year period

• pay significant outstanding tax debts for themselves and related entities

• correctly report taxable income, goods and services tax and other required financial information to the Australian Taxation Office (ATO) over a period of approximately 3-years

• adequately respond to requests from the ATO during an audit and to a compulsive notice issued by a trustee in connection with the administration of a bankrupt estate.

Our investigation also revealed the tax agent removed themself as a director of 2 companies prior to registering with the Tax Practitioners Board. They then resumed the position as director of both companies after receiving notice of their successful registration as a tax agent. The Board Conduct Committee (BCC) found the agent had engaged in that conduct for the express purpose of avoiding declaration of the outstanding tax obligations for those entities in their registration application. 

The BCC determined they were no longer a fit and proper person and terminated their tax agent registration with a ban on reapplying for 3-years. In making its decision, the BCC noted the serious nature of the conduct and that the evidence showed an extended failure to comply with their personal tax affairs. The BCC specifically noted the lack of integrity and the fact the conduct formed an ongoing pattern of behaviour that was inconsistent with the standards expected of a tax practitioner.

The company that the tax agent was director for was also found to have breached the Code for failing to lodge multiple income tax returns and business activity statements and failing to pay or make arrangements to pay large tax debts. In addition, when the Committee found the tax agent failed to be a fit and proper person the company no longer met the registration requirement that each of its directors is a fit and proper person. The committee also terminated the company’s tax agent registration and imposed a 3-year ban on reapplying.

The BCC concluded that the continued breaches demonstrated an extended pattern of showing disregard for the ethical and professional obligations imposed on a registered tax practitioner.