Tax Agent

Issued: 1 September 2023

Last modified: 1 September 2023

Date of decision: 1 June 2023

We found a tax agent and the company they were the sole director of had breached the Code of Professional Conduct (Code). In particular they breached:

  • Code Item 1 – you must act honestly and with integrity

  • Code Item 2 – you must comply with the taxation laws in the conduct of your personal affairs.

The tax agent and their company failed to:

  • declare outstanding taxation debts in the company’s renewal application

  • lodge super guarantee (SG) statements

  • pay employee SG contributions by their respective due dates.

In relation to another company that the tax agent was the sole director of, we also found the tax agent failed to:

  • lodge an SG statement and pay the employees’ SG contributions by the due date

  • pay the companies taxation debt or arrange an approved payment plan

  • report and withhold a pay as you go withholding amount for one quarterly period.

Meeting your own tax obligations is a fundamental requirement for all registered tax practitioners. Not only is it a requirement under the law, but registered tax practitioners play a significant role in influencing and supporting the tax system. Tax practitioners are therefore required to ensure their personal tax affairs, including those of related entities are in order. This includes:

  • lodging income tax returns on time

  • lodging instalment or business activity statements on time

  • meeting your employer obligations

  • paying all tax amounts when due or coming to an arrangement with the Australian Taxation Office to pay amounts owing.

And importantly, in the case of a company or partnership registration, the company or partnership must ensure that it meets its tax obligations as well.

The Board Conduct Committee (BCC) decided to issue the tax agent and the company with a written caution. In addition, the tax agent was given an order to complete a course in the Tax Agent Services Act 2009.

In making its decision, the BCC considered that the tax agent and the company had rectified their outstanding returns and the tax agent had addressed their outstanding debts.