In the first case, the Administrative Appeals Tribunal (AAT) affirmed the Tax Practitioners Board’s decision to terminate the registration of a tax agent (Tung), following the lodgement by Tung of a number of unverified tax returns without making direct contact with the taxpayers.
Facts
The tax agent accepted instructions to prepare tax returns for 346 alleged taxpayers. No contact was made with the individual taxpayers nor were any identification checks made.
The tax agent ignored discrepancies with details on the ATO portal without making further enquiries, and the tax agent was aware that PAYG instalments were high in comparison to the income of the relevant taxpayers.
The Tax Practitioners Board determined that the tax agent was not a fit and proper person to prepare tax returns. The tax agent’s registration was terminated and he was precluded from applying for registration as a tax agent or BAS agent for three years.
AAT decision
The AAT affirmed the decision of the Board and held that the tax agent should have made further enquiries regarding the instructions and materials presented to him but had deliberately refrained from doing so.
The AAT also held that the three-year ban from applying for registration was appropriate and would allow a period in which the tax agent might take steps to restore his reputation.
This case highlights to tax agents and BAS agents that wilful blindness to fraudulent schemes will not go unpunished.
