Tax agent with overdue tax debts fails to win back registration

The tax agent practised as a registered tax agent for almost 40 years, until June 2025, when the Tax Practitioners Board terminated his registration.

The TPB alleged that the tax agent had breached section 30-10(2) of the code in respect of three categories of conduct by failing to lodge income tax returns for two consecutive years, failing to lodge 14 business activity statements by their due dates, and defaulting on a payment arrangement with the Commissioner of Taxation.

Prior to the termination decision, the TPB had previously and unsuccessfully attempted to regulate the tax agent for tax compliance.

In June 2018, the TPB had issued a sanction against the applicant for breaches of the code. This followed an investigation by the TPB concerning the applicant’s failure to lodge personal income tax returns on time for the income years 2010, 2014, and 2015, and for having an integrated client account debt (ICAD) without having made arrangements with the Commissioner of Taxation to enter into or comply with an arrangement to repay his tax debts.

It applied a sanction in the form of a caution and ordered the applicant to pay down his ICAD in full by 25 April or enter into a payment arrangement with the commissioner by that date.

The tax agent failed to do either by April 2019. In July 2020, the TPB notified the tax agent that it was commencing a fresh investigation. The applicant then entered into a payment arrangement with the commissioner on 22 September 2020.

On 29 September 2020, the TPB issued a further sanction to the applicant in the form of a written caution.

In September 2024, the TPB warned the tax agent that it was again commencing a fresh investigation into possible breaches of the TASA.

At the end of September 2024, the TPB issued a statutory notice to the applicant requesting information and documents.

The tax agent failed to fully comply with that notice by the due date of 14 October 2024. Then, despite promising to comply by 28 October 2024, the applicant again failed to respond.

In December 2024, the TPB issued a further statutory notice to the applicant requesting information and documents. Once again, the tax agent failed to fully comply with that notice by the due date of 18 December 2024.

In April 2025, the TPB notified the tax agent of alleged breaches relating to his failure to comply with the Tax Agent Services Act and provided him with a copy of its submission to the Conduct Committee. It invited him to respond.

The tax agent lodged a response to the submission on 2 May, and on 8 May 2025, the TPB made the termination decision. The tax agent then applied to the tribunal seeking a review of the termination decision.

The applicant conceded that he had failed to lodge his returns for a considerable period but attributed this to mental health problems. He had also previously informed the TPB that he was suffering from overwork, depression and a cancer diagnosis. He had also been ill and hospitalised twice in 2022.

He also stated that while it was important for a tax agent to keep their personal tax obligations up to date, his non-compliance was not critical to his practice and that accuracy in the work done for clients was more important.

The tribunal acknowledged that the applicant had made sporadic efforts to address aspects of his non-compliance since 2010, but noted that the tax agent had had no payment arrangement for his ICAD since September 2025 and, before that, had a long period during which his returns and statements were not up to date.

Senior tribunal member Jane Lye said the tribunal could not ignore the applicant’s long history of non-compliance and longstanding debt, which the TPB had previously tried to address by imposing sanctions.

“Nor can it ignore the apparent lack of any definitive plan or inclination to make arrangements to pay down the ICAD,” said Lye.

“There also seems to be little likelihood on the evidence that he will pay down his ICAD.”

The TPB also alleged that the applicant had failed to provide tax agent services competently. This related to his failure to complete a tax return for her SMSF over a six-month period, even though the return was already overdue.

The tax agent claimed that the client had failed to supply the basic documents required for the tax return and the audit. He later conceded that he requested the documents only after being appointed to complete the tax return.

The tribunal was satisfied that the applicant had significantly delayed completing the work for a client and had also failed to keep her informed about the progress of the work he was supposed to undertake. 

It also found that in another instance, the applicant had performed work for a client that was internally inconsistent and implausible.

The tribunal found the non-registration period appropriate for the circumstances and affirmed the TPB's decision.