McCarthy and Tax Practitioners Board (Taxation)

This matter concerned an application by Mr Grant McCarthy for review of a decision by the Tax Practitioners Board (TPB) to terminate his registration as a tax agent. The TPB had found that Mr McCarthy was not a "fit and proper person" as required by section 20-5 of the Tax Agents Services Act 2009 (TASA), and consequently, his registration was terminated, with a prohibition on re-applying for registration for four years.

The legal issues before the Tribunal were whether Mr McCarthy had breached sections 30-10(2) and 30-10(14) of the Code of Professional Conduct, and consequently, whether he was a fit and proper person to be registered as a tax agent. The Tribunal was also required to determine if the four-year prohibition on re-application for registration was an appropriate sanction.

The Tribunal found that Mr McCarthy had breached section 30-10(2) of the Code by failing to lodge his Business Activity Statements (BAS) by their due dates and by failing to pay his outstanding tax debts, including significant amounts for company tax, superannuation guarantee charge, and a general business charge. It was also found that he breached section 30-10(14) of the Code by failing to respond to the TPB's requests and directions in a timely manner, specifically by not complying with a TPB Order to lodge outstanding returns and pay tax liabilities. Despite acknowledging Mr McCarthy's personal circumstances, including health issues of his children and his own mental and physical health, the Tribunal concluded that these did not excuse his failure to comply with his tax obligations or the TPB's directions.

The Tribunal determined that Mr McCarthy was not a fit and proper person to be registered as a tax agent due to these breaches. However, it varied the TPB's decision regarding the length of the prohibition on re-application for registration, reducing it from four years to two years.