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A tax agent who was found to have evaded over $3.3 million in taxes for his wife and himself has now been struck off the Tax Practitioners Board’s register.
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$3.3m tax-evading agent faces maximum disqualification
13 August 2020
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9 minute read
The tax agent, whose identity has yet to be revealed by the Tax Practitioners Board, was found to have grossly underreported his income in his 2017 to 2019 tax returns, resulting in a tax shortfall of over $1.6 million.
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ATO audits found that the agent had failed to declare over $3.4 million of income earned from his tax agent business in his returns.
Acting on behalf of his wife, the agent also failed to properly disclose income in her 2017 to 2019 tax returns, resulting in a tax shortfall of over $1.7 million.
The TPB has now disqualified the agent and imposed the maximum five years’ ban from applying for registration.
In addition, the ATO has imposed over $1.4 million in penalties on the agent and over $1.5 million in penalties on his spouse for wilful disregard of tax laws.
In terminating the registration of the agent, the TPB’s board conduct committee (BCC) relied on the ATO’s assessment that the agent had engaged in tax evasion by omitting amounts of income that were so significant that it could not have been accidentally overlooked.
The ATO had also found that the agent had purchased two properties during the audit period and made significant repayments towards their mortgages.
“The BCC determined that the ATO’s finding that the agent had engaged in tax evasion struck at the core of his fitness to remain registered as a tax agent,” the TPB said.
“The BCC found that the agent had breached the Code of Professional Conduct by his above conduct. He not only failed to act honestly but also had obstructed the proper administration of taxation laws.”
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