Tax agent terminated for lodging false BAS

Victoria-based tax agent, Isaac Brown, has had his registration terminated by the Tax Practitioners Board (TPB) after it was found he had lodged false business activity statements (BAS) worth almost $4 million.

Operating as Ausred Accounting, investigations found Brown violated five sections of the Code of Professional Conduct by lodging false BAS “without the knowledge or authorisation of more than 15 clients”, which were also “not carrying on an enterprise for GST purposes”.

Brown also misappropriated client refunds by having them paid into his own bank account, provided false engagement letters on behalf of two clients that were provided to the TPB, failed to lodge multiple BAS by the due dates for a company he is a director of, failed to hold professional indemnity insurance (PII) and failed to complete the compulsory annual minimum continuing professional education requirements.

“Mr Brown acted dishonestly and facilitated the misappropriation of tax refunds that he received through the lodgement of false and misleading BAS,” Chair of the TPB, Mr Peter de Cure AM, said.

“This behaviour is inexcusable, and we have terminated Mr Brown’s registration to safeguard taxpayers and community confidence in the integrity of the tax system and profession.

“Our new expanded compliance program, announced by Government late last year, has given the TPB much needed resources to proactively target these high-risk tax practitioners, to address misconduct and to minimise harm and loss of revenue.

“We will continue to work with our co-regulators targeting these higher-risk tax practitioners to stamp out non-compliance.”