The AAT has affirmed a decision of the Tax Practitioners Board refusing an applicant’s application for tax agent registration on the grounds that he was not a “fit and proper person” under s 20-5 of the Tax Agent Services Act 2009.
The Tribunal noted the Board’s concerns with respect to the applicant’s fitness and propriety stemming from certain activities covering broadly the 2000 to 2005 years. The Tribunal was careful to record certain events and circumstances as understood by the applicant indicating that it did not want to make adverse findings against third parties that were not represented at the hearing. Broadly, the events of concern noted by the Tribunal included: alleged understatement and underpayment of clients’ tax liabilities with misappropriation of clients’ moneys at a professional practice; and provision of false information to tax officers in a tax audit to explain an income discrepancy in the applicant’s 2001 and 2002 tax returns. The applicant claimed his was a junior accountant at the time and that his behaviour was due to threats of physical violence towards him.
The Tribunal rejected the applicant’s assertion that he had acted under threats of violence. It also was not convinced of various explanations of certain events. Moreover, the Tribunal was of the view the applicant had “failed to demonstrate any real insight into the seriousness of his earlier conduct”. Accordingly, the Board’s decision was affirmed.
(AAT Case [2012] AATA 518, Re Hourani and Tax Practitioners Board, AAT, Ref: 2010/5015, Frost DP, 7 August 2012.)
[LTN 152, 8/8]