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Melbourne practitioner was found to have a “breathtaking disregard for his obligations”, says tribunal.
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AAT upholds tax agent’s ban for ‘egregious conduct’
16 August 2022
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10 minute read
The AAT has upheld the TPB’s three-year ban of a Melbourne tax agent for “egregious conduct”.
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Gregory Kennedy was guilty of “repeated failures to comply with his taxation obligations” and a “breathtaking” disregard for his obligations, the tribunal said.
The deputy president of the AAT, Bernard McCabe, agreed with the TBP’s ban because Mr Kennedy was no longer a fit and proper person to hold a tax agent registration.
“Mr Kennedy’s good fame, integrity and character is particularly important in a system where tax practitioners are the connection between individual taxpayers and the Commissioner (of taxation) in our self-assessment system,” said Mr McCabe.
“The system can only work if tax practitioners are trustworthy.
“Mr Kennedy’s disregard for his obligations is breathtaking. His self-important defence of bad behaviour reflects a startling lack of insight into the egregious nature of his conduct.”
The AAT said that Mr Kennedy failed to meet personal tax obligations and had been previously prosecuted for non-lodgement issues.
Mr Kennedy had also acted in contravention of the corporations law by performing as a front for a shadow director who was bankrupt and could not act as a director in their own right.
It dismissed Mr Kennedy’s defence that he was too busy attending to other matters, such as client affairs and community work, to focus on his personal tax obligations.
“His repeated failures to comply with his taxation obligations in the face of formal cautions and criminal proceedings leaves me with little confidence that he will comply with his various obligations in the future,” said Mr McCabe.
“I am nonetheless concerned Mr Kennedy’s expressions of remorse at the hearing were informed by a desire to avoid more serious consequences.
“His repeated claims in his statement that he made a deliberate choice to disregard his taxation obligations might more accurately reflect his genuine beliefs.”
Chair of the TBP, Ian Klug, said he was pleased with the AAT’s conclusion.
“I welcome the AAT’s decision which sends a strong message to any tax practitioners involved in misconduct,” he said. “Our goal is to support the integrity of the tax profession and the tax system.
“The community has no tolerance for tax practitioners who are dishonest, who fail to address their own tax obligations and who are involved in sham tax evasion or potential corporate law transgressions.
“These egregious tax practitioners will be banned, by deregistration and exclusion for a suitable period, which reflect the most serious sanctions under the law.”
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