The AAT has increased the period of suspension of a tax agent’s registration under s30-25 of the Tax Agent Services Act 2009 (TASA) from 3 months to 12 months with effect from 17 April 2014.
In May 2013, the Tax Practitioners Board notified the tax agent of its decision to suspend his registration for a period of 3 months (from 26 June 2013 to 26 September 2013). That decision was stayed until the present proceedings. The Tribunal heard that the tax agent did not dispute the details of alleged breaches of the Code of Professional Conduct, which included,
(a) failing to lodge his personal income taxation returns for the financial years 2009, 2010 and 2011 by the respective due dates;
(b) failing to lodge his business activity statements (BAS) for the period covering 1 July 2011 to 30 September 2012 by the respective due dates;
(c) failing to lodge the partnership ITR’s for the 2009, 2010 and 2011 financial years by the due dates;
(d) failing to lodge the Partnership’s BAS for the quarters ending 1 July 2011 to 30 September 2012 (inclusive) by the due dates;
(e) failing to pay by the respective due dates, his personal income tax debt of id=”mce_marker”7,447; his client account centre debt of $60,465.06; and the partnership CAC debt of $716;
(f) failing to pay employer contribution to his employee superannuation funds during the 2007, 2010 and 2012 financial years pursuant to the Superannuation Guarantee Charge Act 1992. [Mr Brown informed the Tribunal that the breaches with respect to the Superannuation Guarantee Charge Act should date from 2001 which is supported by relevant documentation contained in the T documents.]
However, the agent claimed his reasons for non-compliance included the costs and issues arising from his wife’s spinal surgery treatments, lack of available finances and insufficient time to attend to his personal affairs due to his professional workload. The tax agent argued he had already served a period of self-imposed suspension.
The Tribunal found the agent had not taken steps to modify or attend to his ongoing breaches. It was in evidence that the agent was still not paying super guarantee contributions to his current employees. The Tribunal was also of the view the agent had not demonstrated any contrition for his actions or appeared to appreciate the seriousness of his breaches of the tax laws. In the circumstances, the Tribunal determined the agent’s registration suspension should be varied by increasing it to 12 months with effect from 17 April 2014.
(AAT Case [2014] AATA 260, Re Cleary and Tax Practitioners Board, AAT, Ref No: 2013/3064, Cunningham SM, 2 May 2014.)
[LTN 83, 5/5/14]
Extract from the Tax Agent Services Act 2009
s30-25 Suspension
(1) The Board may, by notice in writing, suspend your registration for a period determined by the Board.
Note: The Board must cause notice of its decision to be published in the Gazette : see section 60-140.
(2) You must not provide * tax agent services during the period of suspension.
Note: If you provide tax agent services while suspended, you may contravene a civil penalty provision: see subsection (4) and Subdivision 50-A.
(3) If, when the Board suspends your registration under subsection (1), your registration is already suspended, suspension is for a further period that the Board determines is appropriate. The further period commences at the end of the period of suspension.
(4) While you are suspended, you are taken not to be a * registered tax agent or BAS agent, except for the purposes of:
(a) Part 2 (Registration), Subdivision 30-C (Notifying a change of circumstances) and Part 4 (Termination of registration); and
(b) this Division.