A tax agent has had their registration terminated by the Board Conduct Committee (BCC) after falsifying business activity statements (BAS) to enable a company – of which they were the sole director – to receive Cash Flow Boost (CFB) payments.

The BCC found the tax agent breached Code item 1 of the Code of Professional Conduct as they did not act honestly and with integrity. They falsely reported salary, wage and pay as you go (PAYG) withholding amounts in two quarterly BAS in 2020 on behalf of the company to benefit from CFB payments. 

Prior to the lodgement of the two quarterly BAS in 2020, the company had not reported PAYG withholding amounts in previous original BAS and when audited by the Australian Taxation Office (ATO) proceeded to amend earlier BAS to report PAYG withholding amounts. When requested by the ATO, the tax agent was unable to provide substantiation that eligible payments subject to PAYG withholding had in fact been made by the company for the two quarterly periods in 2020. Consequently, the ATO determined that the company was not entitled to receive the CFB payments.

Based on this conduct, the BCC terminated the tax agent’s registration, and banned them from reapplying for registration for 12 months. 

In making its decision, the BCC considered the deliberate nature of the tax agent’s conduct, their lack of remorse, the significant correspondence issued by the Tax Practitioners Board and ATO about CFB, and the importance of the TPB’s role in protecting the integrity of the tax system and the professional standards expected of tax practitioners.