Norman and Tax Practitioners Board

This matter concerned an appeal by Mr Norman against a decision by the Tax Practitioners Board (TPB) to terminate his registration as a tax agent and that of his company, A G Norman & Associates Pty Ltd. The TPB contended that Mr Norman, as the sole director and controlling mind of the company, was not a "fit and proper person" as required by section 20-5 of the Tax Agents Services Act 2009 (TASA) due to alleged breaches of the Code of Professional Conduct.

The legal issues before the court were whether Mr Norman had breached various provisions of the Code of Professional Conduct, specifically sections 30-10(1) and 30-10(2), by failing to act honestly and with integrity, and by failing to ensure the company and the trust he controlled complied with taxation laws. The court was also required to determine whether these breaches, along with his own tax affairs being subject to audit and amendment, rendered him not a fit and proper person for registration as a tax agent.

The court found that Mr Norman had indeed breached section 30-10(1) of the Code by failing to disclose overdue personal tax obligations in multiple annual declarations and renewal applications submitted to the TPB, and by providing false or misleading information to a TPB officer regarding the trust's overdue tax obligations. Furthermore, the court determined that Mr Norman breached section 30-10(2) by causing the trust to make false and misleading statements in its income tax return, failing to lodge business activity statements and pay GST/PAYG liabilities when due, defaulting on payment arrangements, and failing to make arrangements to pay outstanding debts. These actions, coupled with the ATO's findings regarding his clients' deductions and his own tax affairs, led the court to conclude that Mr Norman was not a fit and proper person.

The court varied the TPB's decision, reducing the period for which Mr Norman was prohibited from reapplying for registration.