In a decision handed down on Fri 20.9.2013, the AAT refused an application for a stay of a Tax Practitioners Board (TPB) decision to cancel the registration of a tax agent and declare that he may not apply for registration for a period of 3 years.
The applicant registered as a tax agent in November 2010 and in 2011 lodged more than 400 tax returns with the ATO on behalf of either fictitious persons or taxpayers (both individuals and businesses) which had not authorised him to prepare tax returns on their behalf.
In 2013, the TPB commenced an investigation into the applicant and subsequently cancelled his registration after finding that he had breached s 50-20 of the Tax Agents Services Act 2009 and s 30-10 of the Code of Professional Conduct. It also declared that the applicant would not be able to apply for registration as a tax agent for 3 years.
The applicant broadly argued that he was an innocent victim of a cleverly and expertly executed fraud and that it was not unreasonable to not make contact with any of the taxpayers involved as there was no legal requirement to do so. He contended that if the stay was not granted, it would cause hardship for him and his family.
The Tribunal found that on the material before it, it could not be satisfied that in the intervening period before the determination of the substantive application that the applicant would not repeat similar conduct. It said in its opinion, it would not be in the public interest to allow the applicant to continue practice as a tax agent in the intervening period. Therefore, the AAT held that it would not be desirable to make an under s 41(2) of the AAT Act and refused the application for a stay of TPB’s decision.
(AAT Case [2013] AATA 669, Re Li and Tax Practitioners Board, AAT, Ref No 2013/3896, Britton SM, 20 September 2013.)
[LTN 183, 20/9/13]