BBAL501 Taxation Law Summer 2019: Case Study Kishore v Tax Board

This case study report analyzes the case of Kishore v Tax Practitioners Board, focusing on violations of the Tax Agent Services Act 2009 (TASA) and professional conduct. The report examines the conduct of Mr. Kishore, who prioritized his personal interests over his worker's, leading to monetary losses. The court determined that Mr. Kishore's actions violated section 30-10(1) of the TASA. The report delves into the application of alternative sanctions, considering the severity of the conduct, the potential for repetition, and the impact on clients. The analysis concludes that a written caution, rather than termination of registration, was the appropriate sanction. The report highlights the importance of tax agents acting with honesty and integrity and providing proper tax consultancy services. The case underscores the significance of maintaining public trust in the tax system and adhering to the professional code of conduct.

Running head: CASE STUDY 0
TAXATION LAW
FEBRUARY 12, 2019
STUDENT DETAILS:

CASE STUDY 1
Kishore v Tax Practitioners Board 2017 ATC 10-448
Issue
Whether conduct made violation of Section 30-10(1)? Whether written attentiveness
(alternate sanction) is suitable? Whether the registration of a tax agent is required to be
terminated? Can the accounting firm use professional code of conduct to bludgeon a
determined or motivated worker?
Rule
As per the professional code of conduct according to the section of 30-10 of the Tax Agent
Services Act 2009 (TASA), it is required by the tax agents or tax advisers to fulfil the duties.
The tax agents should act with reliability and honesty. It is also required to comply with the
taxation laws for the personal conducts. The tax agent should behave legally in best interest
of clients. The tax agent should have proper knowledge related to the services related to tax
agents. Section 30-15(2) of the Tax Agent Services Act 2009 set out the existing
authorisations at the failure to conform to the professional code of conduct. The Tribunal on
review or Board have the power to provide the written caution or/and terminate the
registration of tax agent as per section 30-30 of the Tax Agent Services Act 2009 or suspend
the registration of tax agent according to section 30-25 of Act or/and an order the tax agent as
per section 30-20 of the Act.
Further, the obligation of alternative sanctions are not to give the punishment to people. The
alternative sanction is available for the public security and keep the appropriate norms in the
administrated industries. The alternative sanction also provides to motivate the people to
follow the proper norms in the upcoming period or to motivate the others to follow these
norms (Morris, 2018). For deciding the proper sanction, the decision-makers are required to
consider the conduct’s seriousness to warrant the sanctions, the influence of proper sanctions

CASE STUDY 2
on the people and curiosity of the people for the applicable proper sanction. It is also required
to consider the scope to which people have concede the severity and violation them, scope to
which people have stated real regret and guilt, the probability of repetition of the conduct and
the possibilities of harm to the people (Wolters Kluwer, 2017).
Application
In the case of Kishore V Tax Practitioners, Board 2017 ATC 10-448, Mr Kishore placed the
personal interest in advance of those of his worker, although Mr Kishore was assured to
ensure the reverse, not only by the employment agreement however also through the
fiduciary duty of integrity. It is held by the court that Mr Kishore and co-defendants were
involved in the strategies of the dishonesty that caused monetary losses to the workers. The
conduct of Mr Kishore violated the section 30-10 (1) of the Tax Agent Services Act 2009
(Lord, 2018).
As per the rule, the suspension or termination of the registration of tax agent must be only for
severity of the conduct. The registration should be terminated in the case of serious
wrongdoings. The reason is that, the administrated industries and common people may be
properly secured and the best interest of civic properly assisted, through the alternative
sanction, which is less severe in comparison of the suspension or termination or no sanction
at all. In the case of Kishore V Tax Practitioners Board 2017 ATC 10-448, the termination
of the registration of Mr Kishore is not warranted. The reason is that this case is not of the
serious type (Boolaky, Mirosea and Singh, 2018).
Further, the main point to be considered is that the conduct Mr Kishore involved in is not
likely to be repeated. That does not by sources excuse conducts of Mr Kishore, however it
does describe this (Sadiq, 2018). The other point is that no customer of Charltons, and no
customer of Instinctive, bear the monetary losses or difficulties as the consequences of

CASE STUDY 3
conduct of Mr Kishore. It is considered by the court that it is right to apply the sanction,
however it is thought by the judges that the proper sanction is to render Kishore the written
caution as per section 30-15(2) (a) of the Tax Agent Services Act 2009. Hence, the court
substitute the decision that Board is to order Kishore written caution for violation of
professional code of conduct as per section 30-10 of TASA (Caratti, et. al, 2018).
Conclusion
As per the above analysis, it can be concluded that tax agents must act honestly and with
integrity. They should give proper tax consultancy services to their clients. In this case, it is
confirmed by AAT that personal conduct can describe performance, which is not consistent
with developing public faith in a tax system, and those that serve it and hereafter violation of
the Code.

CASE STUDY 4
References
Boolaky, P. K., Mirosea, N. and Singh, K. (2018) On the regulatory changes in government
accounting development in Indonesia: A chronology from colonisation and post-colonisation
era. Journal of Accounting in Emerging Economies, 8(3), pp.387-411.
Caratti, S., Pinto, D., Scully, G., and Perrin, B. (2018) An analysis of the Tax Practitioners
Board outsourcing exposure draft. Tax Specialist, 21(3), p. 106.
Lord, K. (2018) Taxation: Strangely foreign: Recent NSW duty and land tax surcharges. LSJ:
Law Society of NSW Journal, (45), p.86.
Morris, N. (2018) Management and Regulation of Pension Schemes: Australia a Cautionary
Tale. New York: Routledge
Sadiq, K. (2018) Country notes: Tax and Whistle-Blower Protection: Part of a Commitment
to Tackling Tax Misconduct in Australia. Intertax, 46(5), pp.429-433.
Wolters Kluwer (2017) Can a firm use the “Code of Professional Conduct” to bludgeon an
ambitious employee? Retrieved from: <http://www.wolterskluwercentral.com.au/tax/income-
tax/can-firm-use-code-professional-conduct-bludgeon-ambitious-employee/>