A tax agent was found by the Board Conduct Committee (BCC) to have engaged in serious misconduct by breaching multiple items of the Code of Professional Conduct (Code) including:

• 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

• Code item 11 – you must not knowingly obstruct the proper administration of the taxation laws.

Our investigation found the tax agent breached Code items 1 and 11 by providing false and misleading information to the Commissioner of Taxation when they failed to declare significant amounts of assessable income. This resulted in a tax shortfall of more than $4 million and an additional $4 million in total penalties.

The BCC also found the tax agent breached Code item 2 by failing to declare the above amounts in addition to not lodging multiple business activity statements by their due dates. They failed to pay or enter into a payment arrangement for outstanding tax debts of more than $10 million.

In addition to the Code breaches, the BCC determined the agent ceased to meet the tax practitioner registration requirement that he be a fit and proper person. This finding was made on several bases, including that the agent:

• had breached the Code

• engaged in a pattern of dishonest behaviour across several years

• engaged in conduct that is wholly inconsistent with the role of providing tax agent services competently and with integrity and undermines the integrity of the taxation system

• had shown they are not a person the Commissioner, clients and the public can have confidence in to perform the functions of a registered tax practitioner company competently and with integrity.

In determining it was appropriate to terminate the agent’s registration, the BCC noted the agent’s conduct undermined the integrity of the tax system, and the professional standards expected of tax practitioners. The BCC also imposed a 5-year ban from re-applying for registration.