TPB shutters western Sydney company for serious misconduct

According to evidence uncovered by the TPB investigation, the company had:

• Provided false or misleading information to the TPB during the course of its investigations
• Provided false or misleading information to ASIC and the ATO to support clients in appointing “straw directors” and to engage in conduct similar to creditor defeating dispositions and phoenix-like behaviour
• Allowed client refunds to be mixed with business and personal expenses, and to be disbursed into an account which the listed director and supervising agent had no control over
• Allowed disqualified accountant Peter Ristevski to provide tax agent services through an arrangement

The TPB imposed the maximum non-application process of five years on the company after considering the conduct of the company and its directors to be extremely serious.

In 2019, Ristevski – who had been a tax agent since 2010 – had his registration terminated by the TPB after an investigation found he had breached several provisions of the TPB code.

He was also disqualified from being an SMSF trustee in September 2016 when it was found he had not lodged income tax returns from 2010 to 2015 for either himself or nine different entities with which he was said to be associated.  

In June this year, a TPB investigation found that Peter Ristevski contravened the Tax Agent Services Act by providing tax agent services while unregistered.

He was found to have represented clients in their dealings with the tax commissioner, including lodging income tax returns and business activity statements using another entity.

He was found to have redirected or caused the redirection of tax refunds into accounts that he had sole or joint control over without the client’s knowledge or authority.

Peter Ristevski lodged an application with the Administrative Review Tribunal seeking an independent review of the TPB’s findings. He rejected the allegations made by the TPB and maintained that the findings were incorrect.

The application stated that Ristevski disputes the board's conclusion that he contravened sections 50-5 and 50-10 of the Tax Agent Services Act 2009. He further contended that he did not advertise tax agent services while unregistered and did not provide tax agent services for a fee or reward while unregistered.

TPB chair Peter de Cure AM said: “The TPB is committed to protecting consumers and maintaining confidence in the tax profession by focusing on high-risk individuals whose conduct poses a risk to the community, the profession and the integrity of the tax system.

“The vast majority of registered tax practitioners comply with their professional obligations and support their clients to meet their personal obligations under taxation and corporate law. Tax practitioners who attempt to support clients to evade their obligations will be identified, investigated and sanctioned.”

He previously stated that this case was a complex investigation as Peter Ristevski had gone to extra lengths to conceal his involvement to ensure that his unlawful activities would not be discovered.

The TPB has encouraged tax practitioners and consumers to report any suspected unregistered preparers to the TPB and confirm that a tax practitioner is registered for the services they provide before sharing personal information.

It has also urged them to be cautious of individuals offering unusually low-cost or informal tax services, and check the TPB register before engaging a tax practitioner.