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The tribunal has rejected a tax agent’s application for a stay on her registration termination despite her pleading that her underlying health condition had led to her breaching the code of professional conduct.
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AAT refuses long-time agent’s plea
19 August 2020
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The tax agent, whose identity has been anonymised to protect her privacy due to her ongoing health issues, had her registration terminated by the Tax Practitioners Board in July, leading her to appeal to the Administrative Appeals Tribunal for a stay on the decision until a review was completed.
The AAT heard that the tax agent admitted that she had failed to lodge tax returns by the due date, failed to meet obligations related to her role as a trustee of the superannuation fund, and failed to deal with the taxation affairs of the fund in accordance with her legal obligations.
However, in her defence, she told the tribunal that her underlying mental health issues had led to her breaches.
These issues were outlined by her treating psychiatrist and in her latest medical material.
The tribunal also heard that she had an exemplary record since she first became a registered tax agent in 1980, and that no previous complaints had been made against her.
The Tax Practitioners Board responded by noting that they had taken into account the tax agent’s personal circumstances and the effects of this in reaching its decision to cancel her registration.
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In refusing to grant a stay order, AAT deputy president John Pascoe said that it was important for the public to be satisfied that those who have the status of a registered tax agent are fulfilling their obligations in a manner which is accepted by both the TPB and the ATO.
He also noted that while the termination would have consequences on the agent’s income and cause an impact on her professional reputation, her work as a tax agent was “relatively small” and it was possible for her clients to find another agent to lodge returns on their behalf.
“The board must be seen to be carrying out its supervisory and regulatory obligations in ensuring that those for whom it is responsible are complying with their obligations under the law and that proper and ethical conduct is evidenced by the profession,” Mr Pascoe said.
“It is relevant in this context that the Commissioner of Taxation determined that the applicant did not meet the requirements to be a trustee or director of a corporate trust of a superannuation entity and disqualified the applicant from acting in this role. The public interest would require such actions to be considered very seriously.”
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