Federal Court dismisses tax agents' appeal
The Federal Court of Australia has upheld a registration termination decision by the Tax Practitioners Board, dismissing an appeal by tax agents.
Tax agents Hemanshu Juneja, and his associated corporate entity Three Wickets, had their appeal against the TPB’s decision to terminate their respective tax agent registrations dismissed by the court. Mr Juneja was also the sole director of Cudmores Integrated Business Solutions Pty Ltd (Cudmores),
In 2014, the TPB decided to terminate Mr Juneja’s tax agent registration on the basis that he had ceased to be a fit and proper person due to his failures, as sole director of Cudmores, to ensure that it lodged tax returns and business activity statements by the relevant due dates, and pay its tax liabilities as and when they fell due.
The TPB subsequently terminated the tax agent registration of Three Wickets on the basis that Mr Juneja, as its sole director, had ceased to be a fit and proper person.
In the appeal dismissal, the court noted that a sole director of a company is responsible for ensuring that the company meets its tax obligations.
Chair of the TPB Ian Taylor reminded tax practitioners that it was a requirement to satisfy the fit and proper person requirement for their registration to remain valid.
“Tax practitioners need to understand that there are serious consequences for failing to meet the fit and proper person requirements,” Mr Taylor said.
“This applies to all individual tax practitioners, and each individual partner and director in respect of partnership and company registrations.”