Gold Coast tax agent banned for systemic SMSF lodgement abuse
A Gold Coast tax agent who misused self-managed superannuation fund auditor numbers for over 170 returns has now been banned from practising for four years.
The Tax Practitioners Board has now terminated the registration of tax agent Edward Mark Purnell-Webb and his business Superannuation Administration Specialists (Qld) Pty Ltd, with both facing a four-year ban.
The termination comes after an audit and referral by the ATO, with the TPB’s investigation uncovering that Mr Purnell-Webb had lodged more than 170 returns for SMSF clients where he claimed the funds had been independently audited, but that no audit had actually been conducted.
SMSFs are required to be audited by a registered SMSF auditor annually.
The misuse of SMSF auditor numbers (SAN) has been an area of focus for the ATO and the TPB in recent times, with the Tax Office’s ongoing compliance campaign revealing thousands of SAN misuse over the 2017 and 2018 income years.
A total of 74 tax agents representing 106 funds that lodged 2017 and 2018 SMSF annual returns with an incorrect, and perhaps fraudulently recorded, SAN are currently being investigated by the TPB.
TPB chair Ian Klug said Mr Purnell-Webb had undermined the superannuation system and was no longer trustworthy to perform the functions of a registered tax agent.
“Mr Purnell-Well has shown himself to be a risk to consumers,” Mr Klug said.
“The TPB has an important role in consumer protection and maintaining the integrity of the tax practitioner profession. Misconduct of this kind undermines the integrity of the entire SMSF regulatory regime.
“This decision serves as a warning to other tax practitioners who may be thinking of engaging in this kind of egregious behaviour.”
The ATO will soon call on SMSF auditors to review the list of funds that reported their SAN on 2019 SMSF annual returns in the next month.
“Approved SMSF auditors have a critical role in helping to maintain the health and integrity of the SMSF sector through the annual audit of each SMSF,” said ATO deputy commissioner John Ford.
“SMSF trustees deserve to have confidence in the integrity of tax professionals. They expect them to accurately report their information to the ATO.
“By disregarding the strict rules, they are not only breaking the law, but they are also letting down trustees who have entrusted their affairs to be handled professionally.”
