A company tax agent and an individual tax practitioner, who served as the supervising agent for the company, have had their registrations terminated following an investigation that revealed serious unethical practices and violations of key principles outlined in the Code of Professional Conduct (Code) and the Tax Agent Services Act 2009.
The investigation found that the individual tax practitioner breached the Code by accepting the role of supervising tax agent for four companies in exchange for remuneration, without the intention or capability to adequately supervise the tax agent services provided by those companies.
To maintain registration, companies must have a supervising registered tax practitioner to ensure that the services offered are provided competently. This requirement is ongoing for all companies and partnerships.
As both a director and the sole supervising tax agent of the company, the individual tax practitioner failed to take action against or was willfully blind to the conduct of an unregistered preparer associated with the company. This negligence allowed the unregistered preparer to instruct and persuade other tax preparers working for the company to engage in unethical practices.
Under the unregistered preparer's direction, the company prepared and lodged income tax returns through myGov without sufficient supervision. Furthermore, the company had policies that explicitly instructed unregistered preparers to disregard the clients’ true taxation positions when preparing returns. This resulted in tax shortfalls and penalties for 20 clients during the 2019 and 2021 tax years.
This case underscores how a registered tax practitioner can facilitate illegal tax agent services by unregistered preparers. In such arrangements, the tax practitioner bears the primary risk, while the unregistered preparer stands to gain the most benefit.
The individual tax practitioner involved in this serious misconduct was deemed unfit to remain registered. As a result, their registration and the company's registration were terminated, along with a two-year ban on reapplying.
We will take swift and decisive action in these situations and will not tolerate any conduct that negatively impacts the entire tax profession by allowing unregistered preparers to illegally enter the system and jeopardize consumer interests.

Source: Australian Government Tax Practitioners Board (https://www.tpb.gov.au/home)
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