Kishore and Tax Practitioners Board

The Administrative Appeals Tribunal reviewed a decision by the Tax Practitioners Board to terminate Mr. Kishore's registration as a tax agent. The dispute concerned whether Mr. Kishore's conduct, primarily arising from his separation from his former employer, Charltons, constituted a breach of the Code of Professional Conduct, specifically the obligation to act honestly and with integrity under section 30-10(1) of the Tax Agent Services Act 2009 (Cth). Mr. Kishore contended that his conduct, which did not constitute a "tax agent service" as defined by the Act, was outside the scope of the Board's concern.

The Tribunal was required to determine whether the conduct relied upon by the Board was capable of breaching section 30-10(1) of the Act, even if it was not a tax agent service. The Tribunal also had to consider whether termination of Mr. Kishore's registration was the appropriate sanction, or if an alternative sanction should be imposed. The Board's decision was based on findings made by the NSW Supreme Court regarding Mr. Kishore's breaches of his employment contract, fiduciary obligations, engagement in deceptive strategies, diversion of business opportunities, and solicitation of clients from his former employer.

The Tribunal reasoned that the Code of Professional Conduct, as indicated by the Guide to Division 30 of the Act, regulates both the personal and professional conduct of a registered tax agent. Therefore, section 30-10(1) is not confined solely to conduct related to the provision of tax agent services. The Tribunal found that Mr. Kishore's conduct was capable of breaching section 30-10(1). However, in considering the appropriate sanction, the Tribunal determined that termination of registration was reserved for the most serious cases. It concluded that Mr. Kishore's conduct, while a breach, was not in the most serious category, was unlikely to be repeated given his current employment circumstances, and that the public interest could be adequately protected by a less severe sanction.

Consequently, the Tribunal set aside the Board's decision to terminate Mr. Kishore's registration. In substitution, the Tribunal ordered that Mr. Kishore be given a written caution.