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The decision reflects a policy of applying graduated sanctions, the regulator has said.
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TPB opts to caution ‘incompetent’ tax agent
07 October 2024
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The TPB has taken disciplinary action against a registered tax agent company, issuing a written caution and mandating additional training for its sole director and supervising agent.
The decision comes after an investigation revealed significant lapses in professional conduct and competency.
The Board Conduct Committee (BCC) found that the tax agent had violated code item 7, which requires tax services to be provided competently.
Its investigation uncovered a pattern of inaccuracies in the preparation and lodgment of client tax returns, leading to compliance activities from the Tax Office.
The ATO’s review identified over-claimed or incorrect deductions that lacked a sufficient connection to assessable income and could not be substantiated.
As a result, the BCC determined “there was no reasonable care taken and no adequate processes in place” to ensure compliance with taxation laws.
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The committee said the agent failed to make sufficient inquiries to accurately assess clients’ financial situations and incorrectly applied tax laws to the circumstances of their clients.
They also failed to ensure statements made to the Commissioner of Taxation on behalf of clients were true and correct.
As a corrective measure, the TPB ordered the tax agent to complete a course on the Tax Agent Services Act 2009.
The TPB said its decision aligned with its strategy of applying graduated administrative sanctions and emphasising education for tax practitioners where appropriate.
“We want to work with registered tax practitioners to support compliance, protect the integrity of the tax system, and safeguard consumers,” it said.
“We will do this by applying a graduated level of administrative sanctions and educating tax practitioners wherever appropriate.”
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