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Tax practitioner banned for using an unregistered preparer and pilfering client money

Tax practitioner banned for using an unregistered preparer and pilfering client money

The Tax Practitioners Board (TPB) has terminated the registration of tax agent Mr Reis Cibala Kaluka and banned him for two years after investigations revealed he allowed an unregistered preparer, Namro Services Pty Ltd (Namro Services), to provide tax practitioner services on his behalf. Namro Services had previously been 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. 

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. 

Chair of the TPB, Mr Ian Klug AM, said ‘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.’

‘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.’

TPB investigations also revealed that Mr Kaluka 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. 

‘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,’ Mr Klug said. 

Based on the findings of the investigation, the TPB determined that Mr Kaluka is no longer fit to provide tax agent services, terminated his registration, and prohibited him from applying for re-registration for two years.

To report a dishonest or unregistered tax practitioner, submit a complaint to the TPB.

About the Tax Practitioners Board 

The TPB regulates tax practitioners in order to protect consumers. The TPB aims to assure the community that tax practitioners meet appropriate standards of professional and ethical conduct. Follow us on Twitter_@TPB_gov_au, LinkedIn and Facebook.

Monday, October 25, 2021