The ATO has dished out over $76m in fines since 2013 to those committing tax crimes.
Dodgy tax agent’s ban from practising a lesson for everyone
A Melbourne tax agent involved in serious misconduct has been slapped with a three-year ban in a lesson in what you won’t get away with at tax time.
In a warning to those expecting to sneak through a few tax hacks, agent Gregory Kennedy has been booted from the Tax Practitioners Board (TPB) for a “breathtaking” disregard for his tax obligations.
Mr Kennedy, who claimed he was too busy to sort out his figures as he was served up tax evasion and false invoicing charges, has been slammed by the Administrative Appeals Tribunal (AAT) for his behaviour.
“His self-important defence of bad behaviour reflects a startling lack of insight into the egregious nature of his conduct,” AAT deputy president Bernard McCabe said.
The TPB said the tax agent’s dodgy conduct was “serious, multifaceted and extended over a long period of time”.
Previously prosecuted for non-lodgement issues, Mr Kennedy failed this time to meet personal tax obligations on several fronts, including on behalf of related entities.
Along with tax evasion schemes and sham invoicing, Mr Kennedy also made false declarations to the Board and acted in contravention of the corporations law, by acting as a front for a bankrupt shadow director, says the TPB.
For the 2020-2021 financial year, there was a 70 per cent decline in ATO successful prosecutions, dropping from 641 in 2019-2020 to 198 the following year. The ATO puts the decline down to an inability to prosecute due to Covid-19 health guidelines.
Since 2013, over $1.3m in reparation orders and over $76m had been handed out in fines by the ATO.
Some of the most common tax crime offences include failing to lodge tax returns, submitting false work-related expenses, failing to report cash income, falsely claiming refunds and benefits which you are not entitled to and using complex, offshore secrecy arrangements.
TPB chair Ian Klug said the community has no tolerance for shady tax agents.
“The community has no tolerance for tax practitioners who are dishonest, who fail to address their own tax obligations and who are involved in sham tax evasion or potential corporate law transgressions,” he said.
“These egregious tax practitioners will be banned, by deregistration and exclusion for a suitable period, which reflect the most serious sanctions under the law.”
He is advising Australians who know of any tax practitioner partaking in misconduct to get in touch with the TPB.
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