A tax agent and their company tax agent registrations were both terminated for serious breaches of the Code of Professional Conduct (Code).

The Australian Taxation Office (ATO) conducted extensive audits over multiple years on several clients of the company. The individual tax agent was the sole director and supervising tax agent of the company. The ATO audits resulted in significant tax shortfalls and penalties for clients of the company. Further, it was found that some tax returns of clients were lodged without the signed authority of the clients.

Our investigations showed that the individual tax agent failed to take reasonable care and provide adequate supervision over the tax agent services provided on behalf of the company.

The Board Conduct Committee (BCC) noted that the individual failed to adequately apply the ATO’s recommendations that were made following audits of prior years, demonstrating a disregard for tax laws and interests of their clients.

It was also found that both the individual and company tax agents had failed to comply with their personal tax obligations. They failed to lodge multiple tax returns and business activity statements by their respective due dates, and failed to correctly report GST and income.

In addition to finding the Code breaches, the BCC determined that the individual tax agent ceased to be a fit and proper person.

In terminating both the individual and company tax agents’ registrations, the BCC also imposed a 2-year ban prohibiting the agents from reapplying for registration due to the seriousness of their conduct.