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The TPB imposed the ban after the agent failed to comply with their tax obligations as both an individual and director of multiple entities.
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Tax agent cops 5-year ban for failing tax obligations
07 March 2024
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A tax agent has received a five-year ban after they were found to have knowingly obstructed the proper administration of taxation laws on multiple occasions and to have continuously failed to comply with their tax obligations.
After completing an investigation, the TPB said it found the tax agent had breached four items of the Code of Professional Conduct.
“The tax agent, in their individual capacity and as the sole director of two entities, lodged multiple income tax returns (ITR) and business activity statements (BAS) containing overstated deductions or credits or underdeclared income, which the ATO audited and determined they were not entitled to,” said the TPB.
“This resulted in significant tax shortfalls and penalties being applied.”
The tax agent also failed to pay multiple tax debts by their due dates, which in their individual capacity amounted to over $1.6 million.
They also failed to cause multiple entities, of which they were director, to pay their significant tax debts by their due dates.
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“The tax agent, in their capacity as a director, failed to cause two companies to comply with their superannuation employer obligations, and failed to cause multiple entities to lodge numerous statements to the ATO by their respective due dates,” it said.
“In addition, as the sole director of a registered tax agent company, the agent was found to have caused the company to engage in conduct that breached multiple items of the Code.”
This conduct included preparing and lodging an ITR for a client that contained deductions the ATO found the client could provide no substantiation for and therefore had no entitlement to.
“The ATO also cancelled another client’s company GST registration after it found the company was not carrying on a business, with the ATO amending 12 quarterly BAS, prepared and lodged by the tax agent company, resulting in a tax shortfall,” the TPB said.
“Another company had GST credits disallowed for 14 quarterly BAS, that were prepared and lodged by the tax agent company, after the ATO found the client did not hold any tax invoices for the reported purchases at the time of lodgement and could otherwise not substantiate the amounts.”
The board conduct committee found that the tax agent had ceased to meet the registration requirement that they were a fit and proper person due to their disregard for their obligations under the Code.
The tax agent’s registration was terminated and a five-year ban from reapplication for registration was imposed.
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