DetailsRegistration requirement not met:
- 20-5(3)(a) Company has ceased to meet registration requirement that each director is a fit and proper person
Explanation: Mr Sarwat McGuid (tax agent registration number 09786004) is the sole director of S & T Income Tax Aid Specialists Pty Ltd (‘the Company’). On 20 February 2020, after completing an investigation, the TPB decided to terminate Mr McGuid’s tax agent registration on the basis that he no longer met the tax agent registration requirements because he is not a fit and proper person.
Paragraph 20-5(3)(a) of the Tax Agent Services Act 2009 provides that a company can be registered as a tax agent if each of its directors is a fit and proper person. On 11 June 2020, the TPB found that the Company had ceased to meet this tax agent registration requirement because its sole director, Mr Sarwat McGuid, was not fit and proper.
The TPB terminated the Company’s registration as a tax agent.
Date of Effect: 28/09/2020Reason: 40-15(1)(b) company no longer meets registration requirements
Date of Effect:
- 30-10(07) Code - failed to provide tax agent services competently
Explanation: On 11 July 2019, after completing an investigation, the Tax Practitioners Board (‘TPB’) decided to terminate the tax agent registration of S & T Income Tax Aid Specialists Pty Ltd (‘the Company’). The TPB found that the Company had failed to comply with the Code of Professional Conduct (‘Code’) by failing to ensure that a tax agent service that it provided, or that was provided on its behalf, was provided competently, as:
• the Company prepared and lodged income tax returns (ITRs) on behalf of eight of its clients, without taking adequate steps to ensure that the ITRs contained accurate information that was supported by appropriate substantiation.
The eight clients had their ITRs audited by the Australian Taxation Office (ATO), resulting in work-related expense (WRE) claims being reduced and/or disallowed, due to:
• the Company claiming WRE deductions without any supporting evidence;
• the Company claiming WRE deductions for expenses that were not incurred in earning assessable income; and/or
• the Company incorrectly applying the tax law to the client’s circumstances.
On average, the ATO allowed only 18% of the WRE deductions claimed, and imposed penalties on six of the audited clients personally.
The Company sought review of the TPB’s decision in the Administrative Appeals Tribunal (AAT), and on 5 February 2021, the AAT affirmed the TPB’s decision of 11 July 2019 to terminate the Company’s tax agent registration.
A link to the AAT’s decision can be found here:
30-30 Failure to comply with Code of Professional Conduct