A company’s tax agent registration has been suspended for 12 months by the Tax Practitioners Board after an audit revealed a shortfall in client tax payments of more than $100,000.
According to the Tax Practitioners Board (TPB), an ATO audit into lodgements made by the unidentified firm revealed that adjustments were needed for 15 clients, with a combined tax shortfall of $101,653.
It was also found that the company had disclosed information relating to its clients’ affairs without their permission or a legal duty to do so.
As well as demanding the tax shortfalls be repaid (an average adjustment to assessable income of $17,669 for each client), the tax office also added penalties of $20,576.
In addition to the registration suspension, the TPB has ordered the company and its sole director to bring all of the lodgements up to date.
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.
Ask the Experts: Does automation stack up financially?
By Christopher Overton
Opinion: How bad do things have to get?!
By Adam Zuchetti
Business lessons from the All Blacks
By Steve Stanley