The Board Conduct Committee (BCC) found that a tax agent and their related company had breached the Code of Professional Conduct (Code). The tax agent was the sole director of the company. 

The tax agent made withdrawals from the company’s trust account without authorisation from clients to fund building projects. The TPB maintained that the tax agent knew, or should have known, that the company’s trust account funds could not be used in that way. The TPB determined the tax agent breached Code item 1 as his actions showed a lack of honesty and integrity.  

TPB investigations also revealed the tax agent breached Code item 13 as he was unable to obtain professional indemnity (PI) insurance that meets our requirements.   

Based on these findings, the TPB determined that the tax agent is no longer fit to provide tax agent services and that their lack of PI insurance means they don’t meet the TPB’s registration requirements. Accordingly, the tax agent’s registration was terminated. 

The BCC also terminated the tax agent registration of the company as the tax agent, in their role as the company’s director, was no longer deemed a fit and proper person and the company also failed to hold PI insurance. 

Due to the serious and deliberate nature of the tax agent’s conduct, they are banned from re-applying for registration with the TPB for three years. To report a dishonest or unregistered tax practitioner, submit a complaint with the TPB.