The Board Conduct Committee (BCC) found a tax agent had engaged in serious breaches of the Code of Professional Conduct (Code) and ceased to meet the registration requirements to be a fit and proper person. Based on these findings, the BCC terminated their registration and due to the seriousness and systematic nature of the conduct imposed a 2-year ban from reapplying for registration.

The tax agent breached Code item 3, by failing to account for clients funds of over $1.1 million that were paid by the Australian Taxation Office into a bank account that they were not a signatory of and had little or no control over, and from which personal and other expenses appear to be paid.

The agent also breached Code item 7 by failing to provide adequate supervision and control over the lodgement of business activity statements over a prolonged period of time. This resulted in client refunds being deposited into a bank account to which they were not a signatory, and otherwise had no control over.

Based on the above conduct and the failure to demonstrate insight or accept responsibility as a registered tax agent for accounting to clients and ensuring refunds received on trust are paid into an appropriate account, the BCC determined that the tax agent had ceased to meet the fit and proper person requirements to remain registered and imposed a 2-year non-application period.