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TPB terminates agents over fraudulent BAS activity

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TPB terminates agents over fraudulent BAS activity

Three tax and BAS agents have had their registrations terminated after they were found to have been involved in fraudulent BAS activity.

Bookkeeper Reporter 12 September 2019
— 1 minute read

The TPB has investigated three tax and BAS agents over the past three months, resulting in the termination of their registrations for the maximum period of five years.

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The TPB chose not to disclose the names of the tax and BAS agents.

In June, a tax agent who allegedly lodged fraudulent BAS and failed to pay outstanding tax liabilities amounting to $1.6 million.

The agent lodged false BAS for clients to generate a GST refund to which they were not entitled; altered clients’ financial details to receive their refunds into the agent’s personal account; and failed to pay an outstanding tax liability for themselves and for 24 related entities.

In July, a registered BAS agent was found to have provided false information to the board in their annual declaration, leading to them failing to meet the fit and proper person requirement.

The agent did not demonstrate sufficient competence in the lodgement of BAS under their personal ABN, and had supplied a statement of relevant experience (SRE) purporting to be signed by their employer. However, their former employer did not consider them a fit and proper person to be registered.

Lastly, in the most recent case, a BAS agent was found to have falsified suppliers’ invoice and personal bank statement.

They failed to lodge a personal income tax return and quarterly activity statements by their respective due dates and pay a tax liability to the ATO, as well as failed to advise the TPB that they had become an undischarged bankrupt.

TPB chair Ian Klug said these three recent cases highlight the scrutiny that tax practitioners must be prepared to undergo in meeting the stringent requirements of registration.

“Tax practitioners who are involved in fraudulent activities of this kind undermine public trust in honest tax advisers,” he said.

“Where we see criminality, we’ll also refer to the authorities for investigation and possible prosecution.”

TPB terminates agents over fraudulent BAS activity
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