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Tax practitioner banned, registration terminated

A tax practitioner has been hit with a two-year ban and had his registration terminated after being found to have allowed an unregistered preparer to provide services on his behalf.

Tax&Compliance Emma Ryan 26 October 2021
— 1 minute read

The Tax Practitioners Board (TPB) has terminated the registration of tax agent Reis Cibala Kaluka. Mr Kaluka was also banned from the TPB for two years.

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The termination and the ban come after investigations revealed Mr Kaluka allowed an unregistered preparer, Namro Services Pty Ltd (Namro Services), to provide tax practitioner services on his behalf. The company had been previously terminated by the TPB.

“Mr Kaluka allowed Namro Services – who he knew to have been terminated by the TPB – to use his registered agent number and access client data via the Australian Taxation Office’s Online services for agents. Namro Services then invoiced and received client tax refunds directly, resulting in four client refunds being misappropriated, a statement from the group said.

“Namro Services also amended two client income tax returns (ITRs) during pre-issue audits and amended four client business activity statements (BAS) resulting in cash flow boost payments being disallowed.”

In addition, the investigation into Mr Kaluka’s activity found that he failed to lodge BAS, ITRs and tax file number (TFN) declarations relating to his own personal affairs and two companies of which he is the sole director.

Commenting off the back of the matter, chair of the TPB Ian Klug AM said Mr Kaluka’s behaviour was not up to standard.

“Mr Kaluka’s failure to act honestly and with integrity and to provide adequate supervision over the unregistered preparer caused significant detriment to multiple clients. Such behaviour puts the Australian community at risk and casts a shadow over those tax agents who do good work,” he said.

“The TPB has a duty not only to maintain the integrity of the registered tax practitioner profession, but to also protect consumers who fall victim to unlawful tax practitioners like Mr Kaluka.

“By failing to ensure his associated entities were complying with their tax affairs, those entities were subsequently placed into liquidation. He then allowed one company to engage in insolvent trading. This clearly demonstrates a pattern of widespread and reckless behaviour.”

Tax practitioner banned, registration terminated
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Emma Ryan

Emma Ryan is the deputy head of content at Momentum Media and editor of the company's legal publication, Lawyers Weekly.

Emma has worked for Momentum Media since 2015 and has been responsible for breaking some of the biggest stories in corporate Australia. In addition, she has produced exclusive multimedia and event content related to the company's respective brands and audiences.

A journalist by training, Emma has spent her career connecting with key industry stakeholders across a variety of platforms, including online, podcast and radio. She graduated from Charles Sturt University with a Bachelor of Communications (Journalism).

Tax&Compliance