A Victorian tax agent had their registration terminated by the Tax Practitioners Board (TPB) after investigations revealed they breached three items under the Code of Professional Conduct (Code), contained in the Tax Agent Services Act 2009.

The tax agent was both a director of a company and the registered tax agent of that company. While occupying these roles, the tax agent included notional deductions in the company’s income tax return which gave rise to a Research and Development tax offset that they ought to have known the entity was not eligible for. This resulted in the Commissioner of Taxation (Commissioner) determining the company was not entitled to the deductions and the company being issued penalties for intentional disregard and intentionally obstructing the Commissioner. 

The tax agent went on to make false statements about their tax affairs in multiple annual declarations and renewal applications that they lodged with the TPB. In considering these actions, the TPB determined the tax agent had breached Code item 1 as they showed a lack of honesty and integrity in their conduct.

In their capacity as director of the company, the tax agent also breached Code item 11 as they failed to comply with a statutory notice issued by the Commissioner. 

Additionally, the TPB found that the tax agent failed to comply with their obligation to assist the company’s liquidator by completing a Report on Company Activities and Property or provide the company’s books and records. This resulted in the liquidator reporting the non-compliance to Australian Securities and Investments Commission.

Lastly, the tax agent also breached Code item 2 by failing to comply with taxation laws in the conduct of their personal affairs and the affairs of the company. Specifically, they failed to:

• lodge multiple tax returns by their respective due dates

• lodge multiple business activity statements by their respective due dates

• pay income tax and integrated client account tax debts by their respective due dates.

The TPB determined the tax agent was no longer a fit and proper person and terminated their registration prohibiting them from applying for registration for 3 years.