This is a case where two tax agents were habitually making incorrect tax deductions on behalf of their clients, and the consequences saw them put out of business.

Using comparisons of statistical data, the ATO had decided to monitor and then audit some of the agent's clients because of concerns that some of their clients had claimed work related expense deductions which were unusually high. Due to the incorrect claims, the clients were required to amend their income tax returns, resulting in a tax shortfall of over $135,000 and penalties totalling $52,694.55.

Disciplinary action was first taken by the Tax Practitioners Board, and upon appeal, to the Administrative Appeals Tribunal. The Tribunal concluded that the agents were not fit and proper persons, and also stated: "Tax agents have a duty to take reasonable care in the provision of their services. Clients trust that their tax agent has the requisite level of training and knowledge to advise them appropriately." Their licences to operate as tax agents were cancelled.

Ref: Yvonne Anderson and Associates Pty Ltd and Tax Practitioners Board [2020] AATA 4022