Peroy and Tax Practitioners Board

This matter concerned a review of decisions made by the Tax Practitioners Board (the Board) regarding Mr Peroy and a company of which he was the sole director and a registered tax agent. The dispute arose from allegations that Mr Peroy and the Company had breached the Tax Agent Services Act 2009 (TASA) Code of Professional Conduct, specifically by failing to comply with taxation laws in their personal affairs and failing to respond to the Board's requests in a timely manner. The Board had previously issued orders in 2019 requiring Mr Peroy to bring lodgments up to date and enter into a payment arrangement with the Australian Taxation Office (ATO) for outstanding debts, with a warning that failure to comply could lead to termination of registration.

The Administrative Appeals Tribunal (the Tribunal) was required to determine whether Mr Peroy and the Company had ceased to meet the registration requirements under the TASA, whether they had complied with taxation laws, and what sanctions, if any, should be imposed. The Tribunal considered the extensive history of non-compliance with taxation obligations, including significant outstanding debts for both Mr Peroy personally and the Company, and the failure to adhere to the 2019 orders issued by the Board.

The Tribunal reasoned that the applicants' conduct, which had persisted over a decade and resulted in substantial debts, undermined the integrity of the self-assessment system and set a poor example for clients and other tax agents. Despite acknowledging Mr Peroy's personal difficulties, the Tribunal found that the applicants had demonstrated a lack of appreciation for the seriousness of their non-compliance. The Tribunal was not satisfied that proposed sanctions, such as further orders to comply or undertaking specific courses, would be effective given the past failures.

Ultimately, the Tribunal decided to vary the reviewable decisions. While the registration of both Mr Peroy and the Company was to be terminated, this was to take effect from 1 July 2024. This extension was granted to provide the applicants with further time to arrange payment of their outstanding debts and to bring their tax affairs into order before reapplying for registration.