A BAS agent has had their registration terminated with a 5-year ban from re-applying for registration after they breached 5 Code of Professional Conduct (Code) items and were found to no longer be a fit and proper person.

During our investigation we found the BAS agent breached:

• Code item 1 – you must act honestly and with integrity
• Code item 3 – if you receive money or other property from or on behalf of a client, and hold the money or other property on trust, you must account to your client for the money or other property
• Code item 4 – you must act lawfully in the best interests of your client
• Code item 11 – you must not knowingly obstruct the proper administration of the taxation laws
• Code item 14 – you must respond to requests and directions from the Board in a timely, responsible and reasonable manner.

The BAS agent demonstrated a lack of integrity and a disregard for their professional obligations under the Code when they lodged multiple original and amended monthly business activity statements on behalf of a client without the client’s knowledge or authorisation. The agent then failed to account to their client by not passing on refunds that arose from their lodgment, instead misappropriating them for personal use. They also made false or misleading statements to the Commissioner of Taxation when they lodged the BAS containing false information.

In misappropriating the client refunds and failing to account to the client for the refunds, the agent was found to have failed to act lawfully in the best interests of the client. This egregious behaviour led to the Australian Taxation Office (ATO) issuing refunds the client was not entitled to. This resulted in the client becoming indebted to the ATO in respect of Integrated Client Account liabilities and associated general interest charge.

The agent also provided false information and documentation to us during our investigation in an attempt to prevent the Board from conducting its investigation and performing its duties. 

Considering the agent had previously been sanctioned for similar conduct relating to unauthorised lodgements, our Board Conduct Committee (BCC) decided to terminate the agent and impose a 5-year ban on re-applying for registration. In making this decision, the BCC considered its role to ensure consumer protection, and its objective to protect and maintain the integrity of the registered tax practitioner profession.