Worsley and Tax Practitioners Board (Taxation)

This matter concerned an application by a registered tax agent to review a decision by the Tax Practitioners Board to terminate his registration. The applicant had been a registered tax agent since 1993. The dispute arose from allegations that the applicant had breached various provisions of the Code of Professional Conduct and had ceased to meet the registration requirement of being a "fit and proper person." The case was heard by Linda Kirk SM in the Administrative Appeals Tribunal.

The Tribunal was required to determine several legal issues. These included whether the applicant had breached section 30-10(2) of the Code by failing to comply with taxation laws in his personal affairs, and section 30-10(8) by failing to maintain relevant knowledge and skills. Further, the Tribunal had to consider whether the applicant had breached section 30-10(14) by failing to respond to the Board in a timely, responsible, and reasonable manner. Crucially, the Tribunal had to assess whether these breaches meant the applicant was no longer a "fit and proper person" as required by paragraph 20-5(1)(a) of the Tax Agent Services Act 2009 (TASA), and if so, whether his registration should be terminated under paragraph 40-5(1)(b) of the TASA.

The Tribunal's reasoning focused on the objective of the TASA, which is to ensure tax agent services are provided to the public in accordance with appropriate standards of professional and ethical conduct. It was established that the applicant had outstanding taxation liabilities and had failed to lodge numerous income tax returns and business activity statements by their due dates, constituting breaches of section 30-10(2). Furthermore, the applicant had failed to respond to multiple requests and directions from the Board, breaching section 30-10(14). The Tribunal found that these failures, particularly the non-compliance with taxation laws and the lack of response to the Board, demonstrated a lack of integrity and character, leading to the conclusion that the applicant was not a fit and proper person to be registered.

Consequently, the Tribunal affirmed the Tax Practitioners Board's decision to terminate the applicant's registration as a tax agent. The Tribunal found that the breaches were serious and that the applicant had not provided sufficient mitigation or demonstrated a commitment to rectifying his conduct to warrant a different outcome.