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Tax (financial) adviser fails to comply with tax laws and Board’s Order

Tax (financial) adviser fails to comply with tax laws and Board’s Order

A tax (financial) adviser’s non-compliance with his personal tax obligations was considered previously by the Board Conduct Committee (BCC) in August 2019 resulting in the BCC ordering the tax (financial) adviser to comply with his payment arrangement entered into with the Australian Taxation Office (ATO) until the debts were settled.

A review of the tax (financial) adviser’s tax affairs confirmed he had defaulted on the payment arrangement and further debts had accumulated.

Our subsequent investigations found the tax (financial) adviser had breached the Code of Professional Conduct (Codes 1, 2 and 14) due to the following reasons:

  • The tax (financial) adviser failed to disclose he had overdue tax obligations in his registration renewal application lodged in December 2017 when he had outstanding 2016 and 2017 tax returns and a total tax debt of over $75,000 at the time.
  • The tax (financial) adviser had failed to lodge his personal tax returns for 2015 to 2018 years and failed to pay personal tax debt, totalling over $150,000, by their due dates.
  • As the sole director of an associated company, he caused the company to fail to lodge four income tax returns between 2011 to 2014 financial years.
  • As the sole director of the same company, in its capacity as a corporate trustee of a trust, he failed to cause the trust to lodge five trust tax returns for 2014 to 2018 financial years, 19 quarterly business activity statements (BAS) and pay its tax debts of almost $85,000 by their due dates.
  • As a director of another associated company, he failed to lodge its 2019 tax return, 30 monthly BAS and 17 quarterly BAS and pay a tax debt of over $6,300 by their due dates.
  • The tax (financial) adviser failed to comply with the Board’s Order issued in August 2019 directing him to comply with the existing payment arrangement he had with the ATO until the debts were settled. The ATO records showed he had defaulted on the payment arrangements and did not enter into a new payment arrangement, and had taken no steps to address the outstanding tax obligations.

The BCC noted that even prior to registering with the Board, the tax (financial) adviser had failed to lodge several BAS and/or tax returns for himself and his associated entities by the due dates.

Considering the above, the BCC determined that the tax (financial) adviser was no longer fit and proper to be registered as he showed systemic non-compliance to the Board’s Order, registration requirements and tax laws.

The BCC terminated the tax (financial) adviser’s registration and prohibited him from applying for registration for a period of 12 months.


Last modified: 3 November 2020