Tax agent loses TPB registration following tax evasion, illegal wage kickback scheme

In Kaur v P&G Accounting Solution Pty Ltd [2025], the employee sought to recover unpaid wages worth approximately $12,260 for work completed from February to May 2019, $3,904 for overtime payments, $88 per week from February to May 2019 in superannuation entitlements and $928 for payments in lieu of notice of termination.

Exact penalties and compensation would be clarified during further proceedings, the court noted.

As the sole director of KPG, the court determined that Rajput was “centrally involved” in the contraventions. Rajput also failed to notify the TPB of this judgment within the required 30 days.

“Rajput knew that the kickback arrangement was unlawful. Indeed, the arrangement was designed to give the appearance of compliance with employment and migration laws,” court documents read.

“The mere design of the arrangement to give such a false appearance implies a consciousness of the contravention it was intended to conceal.”

The TPB found that Rajput had also instructed a second employee to pay him their full wages and superannuation entitlements. Furthermore, he had incorrectly reported figures in several income tax returns, resulting in “significant” tax shortfalls. 

These false and misleading statements to the ATO amounted to tax evasion, the TPB found.

Following the termination of Rajput’s tax agent status, TPB chair Peter de Cure emphasised the importance of community confidence in tax agents, adding that the TPB was committed to ensuring the profession’s integrity.

“Practising in the tax agent profession is a privilege. Most of our registered tax practitioners work hard every day to support our community,” de Cure said.

“It is the conduct of a few such as this that undermines community confidence in our tax profession and ultimately the tax system. Where a tax agent has fallen well short of the appropriate standards of professional and ethical conduct, the TPB will take decisive action.”

Rajput’s company, P&G Accounting Solution, also had its tax agent status revoked with a four-year ban on re-applying for registration. Rajput was also barred from re-applying over that period.

The matter is due to go before a final hearing in the Administrative Review Tribunal after Rajput’s earlier applications for a stay and review of the TPB’s termination decisions were refused.