UNIT 4 63-69 BANK LANE KOGARAH New South Wales 2217
Other records
Expiry date
01/02/2023
Condition
Sanctions
None on record
Appeal
Board decision
CXL Reason
Disqualification
<strong>Period of Effect:</strong> 05/10/2023 to 05/10/2028<br/><strong>Reason:</strong>
Suspension
None on record
Termination
<strong>Date of Effect:</strong> 05/10/2023<br/><strong>Reason:</strong> 40-15(1)(b) company 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(3) - If you receive money or other property from or on behalf of a client, and you hold the money or other property on trust, you must account to your client for the money or other property</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><li>30-10(14) - You must respond to requests and directions from the Board in a timely, responsible and reasonable manner</li></ul><br/><strong>Registration requirement not met:</strong> <ul><li>20-5(3)(a) Company has ceased to meet registration requirement that each director is a fit and proper person</li></ul><br/><strong>Explanation:</strong> On 8 December 2022, after completing an investigation, the Tax Practitioners Board (TPB) terminated the tax agent registration of Fragogianis & Co Pty Ltd (the Company) for breaching Subsections 30-10(1), 30-10(2), 30-10(3), 30-10(7), 30-10(11), and 30-10(14) of the Code of Professional Conduct (the Code) of the Tax Agents Services Act 2009 (the TASA). <br>The TPB also determined the Company ceased to meet the tax practitioner registration requirement under subparagraph 20-5(3)(a) of the TASA that each director be a fit and proper person.<br>The TPB found that the Company breached the following Codes:<br>Breached subsection 30-10(1) of the Code by: <br>1. specifying the details of a bank account, of which the Company’s sole director Mr Fragogianis was the sole holder and authorised operator at all relevant times, on JobKeeper claims, income tax returns (ITR) and business activity statements (BAS) that the Company prepared and lodged on behalf of multiple clients for the purpose of receiving the resulting tax refunds disbursed by the Australian Taxation Office (ATO), without the knowledge and authority of those clients.<br>2. making false statements to the Commissioner of Taxation in BAS lodged for multiple company clients that claimed false wages and PAYG entitlements to obtain a financial benefit, without the knowledge or authority of the companies’ directors.<br>Breached subsections 30-10 (2) and (11) of the Code by failing to respond to a notice issued under section 60-100 of the TASA.<br>Breached subsection 30-10 (3) of the Code by failing to account to multiple clients for payments received on their behalf into a bank account, of which the Company’s sole director Mr Fragogianis was the sole holder and authorised operator at all relevant times. <br>Breached subsection 30-10 (7) of the Code by failing to take reasonable care when preparing and lodging BAS on behalf of multiple clients, which resulted in the ATO making amendments on the basis that the clients were not eligible for Cash Flow Boost Payments. <br>Breached subsection 30-10 (14) of the Code by failing to respond to multiple requests from the TPB in a timely, responsible, and reasonable manner.<br>In determining that the Company’s sole director Mr Anastasios Fragogianis ceased to be a fit and proper person, the TPB considered that Mr Fragogianis:<br>1. had in his capacity as sole director and supervising agent of the Company, caused it to engage in conduct that was found to have breached the Code.<br>2. failed to show acknowledgment, understanding or contrition for his conduct. <br>3. had shown a lack of regard for the TPB and the ATO. <br>4. had failed to respond to requests from the TPB, in a timely, responsible and reasonable manner by failing to respond to the TPB's requests for information, including not providing a response to the TPB’s 60-100 notice. <br>5. despite being requested to do so on multiple occasions over a 12-month period, failed to provide the TPB a copy of the audit conducted on the Company’s trust account.<br>Accordingly, the TPB decided to terminate the Company’s tax agent registration in accordance with subparagraph 60-125(2)(b)(ii) and paragraph 40-15(1)(b) of the TASA.<br>Further, in consideration of the severity of the Company’s conduct that had occurred over multiple years and the fact the Company had previously been sanctioned by the TPB, the TPB determined in accordance with subsection 40-25(1) of the TASA that it be prohibited from re-applying for registration for a period of five (5) years from the date the termination of its registration takes effect.<br>On 20 January 2023, the Company made an application to the Administrative Appeals Tribunal (AAT) for a review of the TPB’s decision. <br>On 5 October 2023, the AAT refused the Company’s application for a stay of the TPB’s decision. <br>A copy of the decision be found here: http://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/cth/AATA/2023/3145.html?context=1;query=fragogianis;mask_path= <br>On 1 November 2023, the Company withdrew its application for review in the AAT.<br>