On 8 July 2021, the AAT confirmed the Tax Practitioners Board decision that a tax agent’s registration be cancelled and he be unable to reapply for 18 months. This was because he had multiple failures in relation to his own tax affairs (which is a breach of the Code of Practice), made a false statement when reapplying for registration and failed to comply with the terms of his ‘stay’ against the Board’s decision to deregister him (which contributed to the ‘not fit and proper’ conclusion).
See below for further detail.
The AAT agreed with the TPB that the tax agent had contravened the Code of Professional Conduct by:
- failing to lodge his 2017 and 2018 income tax returns by the due dates (261 and 93 days late respectively);
- failing to lodge all but 2 monthly BASs for 2017 and 2018 and BASs for February, April, May and July 2019 by the due dates;
- failing to meet his superannuation guarantee obligations for 6 quarterly periods between January 2017 and July 2018;
- failing to pay a personal tax debt of just over $314,000 and a Superannuation Guarantee Charge (SGC) debt of just over $64,400 by the due dates;
- as the trustee of a superannuation fund, failing to cause the fund to lodge BASs by the due dates; and
- making a false declaration when applying for renewal of his registration that he had no overdue personal taxation obligations.
It was also relevant
- that he had failed to comply with an AAT order staying the TPB’s decision to cancel his registration by defaulting on a payment plan for his ICA debt, lodging his 2019 income tax return late and adding new clients.
In view of those contraventions, the AAT was not satisfied the tax agent was a “fit and proper person” as required for registration.
In view of its findings, the AAT affirmed the TPB’s decision to cancel Mr T’s registration as a tax agent and “ban” him from applying for re-registration for 18 months.
Catchwords
TAX AGENTS – termination of registration as tax agent – non-application period of 18 months imposed – contraventions of the Code of Professional Conduct – Applicant failed to manage personal tax affairs – multiple failures to lodge business activity statements, income tax returns and superannuation statements – multiple failures to pay superannuation, business activity statement, income tax and trust indebtedness – multiple payment arrangement defaults – whether Applicant is a fit and proper person – failure to act honestly and with integrity – Applicant lodged application for renewal with false declaration – Applicant failed to comply with stay order – whether non-application period of 18 months is appropriate – decisions under review affirmed
(Tomkinson v Tax Practitioners Board [2021] AATA 2172, AAT, Kirk SM, 8 July 2021.)