<strong>Period of Effect:</strong> 18/05/2023 to 18/05/2027<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> 18/05/2023<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(1) - You must act honestly and with integrity</li><li>30-10(2) - You must comply with the taxation laws in the conduct of your personal affairs</li><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(11) - You must not knowingly obstruct the proper administration of the taxation laws</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 30 March 2023, after completing an investigation, the Tax Practitioners Board (the TPB) decided to terminate the tax agent registration of Michael Clemens. The TPB found Mr Clemens breached subsections 30-10(1), 30-10(2), 30-10(7) and 30-10(11) of the Code of Professional Conduct (the Code) in the Tax Agent Services Act 2009 (TASA). The TPB also determined he was no longer eligible for registration as he no longer satisfied the TPB that he met the tax practitioner registration requirement that he was a fit and proper person. The TPB also imposed a period of four years during which he may not apply for registration. <br>The TPB found that Mr Clemens had breached the Code by:<br>1. making false or misleading statements to the Commissioner of Taxation (Commissioner) by: <br>a. declaring audits had been completed for self-managed superannuation funds by a registered SMSF auditor, when audits hadn’t been completed:<br>i. on two (2) self-managed superannuation fund (SMSF) annual returns (SARs) in his capacity as a trustee for his own SMSF. In doing so he also failed to comply with his personal taxation obligations. <br>ii. on 78 SARs in his capacity as tax agent for several SMSF clients for in total over a number of years<br>b. claiming deductions for audit fees in 22 SARs for several SMSF clients where no audits were conducted and no audit fees were incurred. <br>2. using the credentials of two individuals, without their knowledge, to declare to the Commissioner they were SMSF auditors who had undertaken the SMSF audits prior to lodgement of the SARs.<br>3. provided false information to clients who were trustees of SMSFs to lead them to believe that audits were being undertaken when they were not. <br>4. failing to ensure tax agent services were provided competently in making statements to the Commissioner on behalf of SMSF clients, and obstructing the proper administration of taxation laws<br>5. failing to comply with his personal taxation obligations by not lodging six SARs for his own SMSF within their respective due dates.<br>6. making false or misleading statements in a form lodged with the TPB<br>7. failing to respond to the TPB’s requests in a timely, responsible and reasonable manner<br>Accordingly, the TPB decided to terminate Mr Clemens’ tax agent registration in accordance with subparagraph 60-125(2)(b)(ii) and paragraph 40-5(1)(b) of the TASA on the basis he ceased to meet the registration requirements under paragraph 20-5(1)(a) of the TASA. <br>Further, in consideration of the severity of Mr Clemens’ conduct the TPB also determined in accordance with subsection 40-25(1) of the TASA that Mr Clemens should be prohibited from reapplying for registration under the TASA for a period of four years from the date the termination of his registration takes effect. <br>