CH180130 - Dishonest tax agents: process if we find dishonest conduct

When we identify dishonest conduct by a tax agent we will

• determine that the tax agent is engaging or has engaged in dishonest conduct
• issue a conduct notice to notify the tax agent of our determination, which is subject to appeal and review rights
• if necessary, issue a file access notice to access a tax agent’s working papers where dishonest conduct has been identified, or where the individual has been convicted of an offence relating to tax that involved fraud or dishonesty, and
• once the extent of dishonest conduct has been determined, consider
• charging a penalty for dishonest conduct, and
• publishing the tax agent’s details.

We must have issued a conduct notice before we can charge a penalty for dishonest conduct. However, there may be times when we do not have to issue a file access notice.

There are potentially two types of penalty that can be charged:

• penalties for failing to comply with a file access notice, and
• a penalty for dishonest conduct.

Furthermore, a person can be prosecuted for concealing, destroying or otherwise disposing of material documents

• after a conduct notice is given,
• when a conduct notice is about to be given, or
• after being issued with a file access notice.

We may publish the tax agent’s details where they have been charged a penalty for dishonest conduct of more than £5,000 and they did not make a full disclosure.