The Board Conduct Committee (BCC) has terminated a tax agent’s registration after they failed to adequately supervise their employees and contractors. 

The BCC found that the tax agent had breached Code item 7 of the Code of Professional Conduct by failing to ensure the tax agent services provided on their behalf were provided competently. The tax agent failed to: 

• implement adequate processes, supervision and review arrangements to facilitate the competent provision and accuracy of tax agent services provided on their behalf by employees and contractors. This resulted in an individual being added as a client to the tax agent’s portfolio on multiple occasions without the individual’s authority 

• provide adequate supervision and oversight for six business activity statements (BAS) that were lodged for a client. The six BAS falsely reported Goods and Services Tax (GST) credits and ultimately resulted in an Australian Taxation Office (ATO) audit with penalties being imposed on the client for an intentional disregard of the law

• provide adequate supervision and control over employees and contractors providing tax practitioner services under their tax agent registration. The tax agent did not have knowledge of all persons accessing their tax agent portal under their registered agent number.

The tax agent also obstructed ATO enquiries into their own tax affairs and sent inappropriate correspondence to the Tax Practitioners Board. The BCC determined the tax agent did not meet the registration requirement that they are a fit and proper person.  As the tax agent did not meet a registration requirement, the BCC terminated their tax agent registration.