Tax agent gets max ban for $20m embezzlement

Patrick Buncsi

25 September 2023

A Sydney tax agent has been banned for a maximum of five years by the Tax Practitioners Board (TPB) for allegedly misappropriating more than $20 million in client funds.

The Board has accused Benjamin Carter of “serious and fraudulent misconduct”, with the Penrith-based accountant alleged to have used his clients’ funds to support his lifestyle and gambling debts.

Carter’s alleged misconduct has resulted in five separate breaches of the TSB’s Code of Professional Conduct for tax professionals.

The matter has also been referred to the NSW Police Force for criminal investigation, with Carter arrested and charged with multiple offences.

TPB chair Peter de Cure labelled Carter’s actions as “serious, fraudulent, and [had] demonstrated dishonesty and deception”.

In one instance, Carter was found to have knowingly lodged false business activity statements and amendments on behalf of a client without their knowledge. He also misled other clients into believing he had lodged their tax returns and advised them that they owed tax debts of almost $490,000.

In another instance, Carter received $440,000 from clients to purchase shares on their behalf. He failed to do so and misappropriated the money.

“Mr Carter continued to show disregard for the tax system when he did not meet his own tax obligations, including those of his company, Carters Tax Advisory,” the TPB wrote in a statement.

“He failed to lodge multiple income tax returns, activity statements, superannuation guarantee statements and self-managed super fund returns by their due dates. He failed to pay outstanding tax debts for himself and his company, totalling over $1 million.”

The TSB added: “Due to all these failures, it was determined he was no longer a fit and proper person.”

The matter is currently before the courts.

The TPB is an independent statutory authority of the Federal Government, tasked with regulating tax service providers in Australia.