Suite 8 Kirwan Plaza 40 Thuringowa Drive Kirwan Queensland 4817
Other records
Expiry date
01/02/2024
Condition
Sanctions
None on record
Appeal
Board decision
CXL Reason
Disqualification
<strong>Period of Effect:</strong> 18/07/2023 to 18/07/2025<br/><strong>Reason:</strong> 40-25 Period during which you may not apply for registration
Suspension
None on record
Termination
<strong>Date of Effect:</strong> 18/07/2023<br/><strong>Reason:</strong> 40-5(1)(b) individual no longer meets registration requirements[POPUP_FOR_DETAILS]<br/><strong>Code breach(es):</strong> <ul><li>30-10(7) - You must ensure that a tax agent service that you provide, or that is provided on your behalf, is provided competently</li><li>30-10(9) - You must take reasonable care in ascertaining a client's state of affairs, to the extent that ascertaining the state of those affairs is relevant to a statement you are making or a thing you are doing on behalf of the client</li><li>30-10(10) - You must take reasonable care to ensure that taxation laws are applied correctly to the circumstances in relation to which you are providing advice to a client</li><li>20-15(a) Fit and Proper - good fame, integrity and character</li></ul><br/><strong>Registration requirement not met:</strong> <ul><li>20-5(1)(a) Individual has ceased to meet registration requirement that they are a fit and proper person</li></ul><br/><strong>Explanation:</strong> On 1 June 2023, after completing an investigation, the Tax Practitioners Board (Board) decided to terminate the tax agent registration of Mr Malcolm Howarth. The Board found that Mr Howarth breached subsections 30-10(7), 30-10(9) and 30-10(10) of the Code of Professional Conduct (the Code) in the Tax Agent Services Act 2009 (TASA).<br>The Board also determined Mr Howarth ceased to meet the tax practitioner registration requirement under paragraph 20-5(1)(a) of the TASA that he is a fit and proper person.<br>The Board found that Mr Howarth breached the Code when he:<br>1. failed to take reasonable care in the preparation and lodgement of income tax returns (ITRs) for 46 clients which were subject to Australian Taxation Office (ATO) compliance activities, and were found to have included overclaimed or incorrect deduction claims that: a. did not have sufficient nexus to assessable income, and/or b. could not be adequately substantiated, and c. resulted in tax shortfalls and shortfall penalties payable by the clients.<br>2. did not take reasonable care in ascertaining the state of affairs of 46 clients, which resulted in individuals having their ITRs adjusted with significant tax shortfalls and/or penalties imposed after audit by the ATO:<br>3. did not take reasonable care to ensure that the taxation laws were applied correctly to the circumstances in which he provided advice to 46 clients. Instead, he displayed a lack of reasonable care by contravening or disregarding taxation laws when preparing the ITRs on behalf of the clients resulting in individuals having their ITRs adjusted with significant tax shortfalls and/or penalties imposed after audit by the ATO:<br>In addition, the Board determined that Mr Howarth ceased to meet the tax practitioner registration requirement that he is a fit and proper person, on the basis that:<br>1. his conduct resulted in multiple breaches of the Code as detailed above <br>2. he engaged in ongoing behaviour which undermines the integrity of the tax system and the professionalism of tax practitioners and is not a person that the Board, the Commissioner, clients, nor the public could have confidence would perform the functions of a registered tax agent competently and with integrity.<br><br>