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The TPB cited supervision failures and privacy breaches after an employee used the agent’s myGovID to misappropriate funds.
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Tax agent cautioned over rogue employee’s $319k client refund theft
04 December 2024
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A tax agent has been let off with a caution from the TPB after improperly sharing their myGovID credentials with an employee, leading to the misappropriation of $319,000 from over 100 clients under their noses.
The Tax Practitioners’ Board’s Board Conduct Committee (BCC) found the agent breached their supervision obligations under the code of conduct by failing to ensure a tax agent service was provided competently.
“Following an investigation, it was found that a tax agent breached code item 7,” the TPB said in a statement.
It said the principal tax agent failed to adequately supervise an employee under their control when they allowed their myGovID credentials to be used by an employee.
This then allowed the employee unsupervised access to confidential taxpayer information.
As a result, the employee used the tax agent’s myGovID (now known as myID) to misappropriate over $319,000 in refunds from 109 clients.
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The BCC said allowing employees to access their myGovID credentials demonstrated “a lack of competency and a lack of understanding about privacy requirements”.
The tax agent should have been aware that sharing myGovID with others was a “serious privacy breach that can lead to severe ramifications”, it said.
“The supervising tax agent has a responsibility under the code to direct, oversee and check the services provided on their behalf and they should have taken steps to ensure the tax agent services provided on their behalf were provided competently.”
In issuing the written caution, the BCC said it was evident the principal tax agent had no involvement in the misappropriation of the client funds.
They also reported the incident to the ATO, the TPB and the police as soon as they became aware of the conduct and ensured all the funds were repaid to the clients.
“We remind all tax practitioners to be vigilant when it comes to their obligations under code item 7,” the TPB said.
“Sufficient supervision is a necessary requirement for any tax practitioner registration and enables us to maintain trust within the community and to protect the integrity of the tax profession and tax system.”
“We further remind all tax practitioners of the importance of not sharing myGovID credentials.”
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