A complaint from the current tax agent of a client prompted an investigation into the conduct of the client’s previous tax agent.   

During our investigation, it was found that the agent had lodged amended tax returns of several clients without the clients’ or their representatives’ knowledge. The agent had further provided their own bank account to receive the ATO refunds resulting from these returns and failed to either pass on the refunds in full or at all.  

The Board Conduct Committee (BCC) noted that the agent had appeared to have deliberately targeted vulnerable, senior Australians when making these unauthorised lodgements and keeping the resulting refunds. 

Subsequently, there were further complaints from other clients stating that they did not receive their tax refunds for returns also lodged by this agent. The BCC found that the agent had received the refunds in their own bank account and failed to pass on the refunds to their clients. 

The BCC further noted that the agent had failed to maintain professional indemnity (PI) insurance. 

The agent also failed to respond to our enquiries and requests for information. 

As a result of the above conduct, the BCC determined that the tax agent had breached the Code of Professional Conduct and was no longer a fit and proper person. The agent’s conduct showed a lack of integrity, and also undermined the integrity of the taxation system and the professional standards expected of tax practitioners. The BCC also determined that the agent failed to meet a registration requirement of maintaining PI insurance that met our requirements. 

The BCC determined the tax agent could not be relied upon to perform the functions of a registered tax practitioner competently and with integrity, and terminated their registration. Given the deliberate and serious nature of the agent’s conduct in lodging unauthorised returns and keeping the resulting refunds, the BCC also imposed the maximum ban of 5 years on the agent from applying for registration.