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A deregistered tax agent has successfully reduced his banning order by half after pleading his case with the Administrative Appeals Tribunal.
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Tribunal reduces agent’s banning order
11 January 2021
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The agent, Antoine Sabbagh, had seen his registration terminated on 17 April 2020, along with the maximum five-year ban from applying for registration after the Tax Practitioners Board determined that he was not a fit and proper person.
The TPB’s investigation found that Mr Sabbagh had failed to disclose an earlier criminal conviction for dishonestly obtaining a financial advantage, as well as outstanding BAS statements of an associated entity, in two annual declarations.
The regulator also considered that he had acted improperly by lodging a form with ASIC to change the name of the director and sole shareholder of a client company without a valid written resolution.
However, Mr Sabbagh told the tribunal he had failed to disclose his conviction because he mistakenly considered that a suspended sentence with a good behaviour bond was not the same as being sentenced to imprisonment.
He also reasoned that he failed to disclose outstanding personal tax obligations because he did not consider that the question covered overdue obligations of corporations with which he was associated with.
The AAT noted that while Mr Sabbagh’s explanations were “rather weak”, it accepted that he had formally expressed his contrition and remorse.
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In deciding to reduce the period of prohibition of applying to register to 31 December 2022, the AAT noted that preventing re-registration needed to be balanced against the personal circumstances of the agent.
The tribunal gave consideration to hardships faced in Mr Sabbagh’s personal and business lives, and was satisfied with the contrition that he had since shown.
“I am satisfied that the criminal case and these proceedings have made it very clear to him how important probity and integrity are to a registered agent,” said AAT senior member Roger Hamilton.
“Perhaps in recognition of the gravity of the situation, the applicant did not renew his tax agent registration in April 2020. This may be regarded as a further act of contrition.
“In the present case, it seems too severe to impose a ban on him from applying for registration for five years.”
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