The Administrative Review Tribunal (ART) has upheld our decision to terminate the tax agent registrations of Jeff Lunn and Gregoriades Sofocleous & Associates Pty Ltd. 

We terminated the registrations and imposed a 2-year ban from reapplying after finding multiple breaches of the Code of Professional Conduct (Code) and determining Mr Lunn was no longer a fit and proper person. As sole director and supervising agent of Gregoriades Sofocleous & Associates, this also meant the company could not meet ongoing registration requirements.

Our key findings included:

• making false and misleading statements to the Commissioner when lodging employee income tax returns
• incorrect GST, pay as you go withholding tax and income claims causing significant shortfalls and penalties
• failure to amend and lodge income tax returns for clients
• lodging income tax returns for at least 14 clients with excessive or unsubstantiated deductions.

Mr Lunn, self-represented and cited personal hardship and COVID-19 impacts as mitigating factors. While these were acknowledged, the ART focused on the seriousness of the breaches and the public protection objectives of the Tax Agent Services Act 2009 (TASA).

General Member Darian-Smith upheld our findings and deemed termination appropriate. The non-application period was reduced to 18 months, considering the personal circumstances, but was balanced against public interest. The ART emphasised that registered tax practitioners hold a privileged and trusted role and must adhere to higher standards of integrity.

General Member Darian-Smith referred to a recent statement made in the English Court of Appeal, ‘…In professional codes of conduct, the term “integrity” is a useful shorthand to express the higher standards which society expects from professional persons and which the professions expect from their own members…. The underlying rationale is that the professions have a privileged and trusted role in society. In return they are required to live up to their own professional standards….’

This case reinforces key obligations for tax practitioners:

• Act with integrity – breaches of trust can lead to termination.
• Comply with your own tax obligations – your personal compliance sets the benchmark for professional behaviour.
• Substantiate deductions – ensure clients provide written evidence for all claims.
• Maintain robust processes – implement systems to verify client information before lodging returns.
• Understand the Code – familiarity with all Code items under the TASA is essential to avoid breaches.