Tax agent banned for tax avoidance scheme
The Tax Practitioners Board (TPB) has terminated the registration of former KPMG partner, Christopher Allenby.
Allenby was banned from practice for three years after he had been associated with a client’s scheme to underpay millions in taxes and penalties.
Following investigations by the Australian Tax Office (ATO) and the TPB, it was found that Allenby was associated with a client’s scheme to avoid $3.1 million in taxes and penalties.
This involved a purported sale of assets, changing the ownership of companies and related discretionary trusts and using complex call options.
Ian Klug, TPB chair, said tax practitioners had to act lawfully and ethically, especially when the majority were working hard to support their clients, which included accessing stimulus measures from the Government.
“We will act firmly against tax agents who engage in evasion or avoidance of taxes,” Klug said.
Klug said Allenby was aware or should have been aware these schemes were in breach of tax and other laws and that failure to undertake appropriate enquiries could amount to incompetence and result in the TPB taking action.
“The community invests trust in tax agents acting with integrity and competence,” Klug said.
“They do not expect advisers to lodge incorrect returns or obstruct the proper administration of the tax system.”
Recommended for you
Government has introduced a bill to Parliament to legislate the first stream of the QAR reforms.
ASIC now has a 1:1 ratio when it comes to court success in the enforcement of crypto activities and more action is expected as Treasury seeks to introduce a regulatory framework.
A leading governance body has hit out at “specialist interest groups proposing ad hoc law reform” when it comes to reforms of financial services legislation and believes an independent body is needed.
The release of ALRC’s final report into financial services legislation has highlighted financial advice as a “significant” focus as it seeks to reduce costs and help advisers understand their obligations, alongside the Quality of Advice Review.
