Dishonest tax agents: determining dishonest conduct: what is dishonest conduct
An individual engages in ‘dishonest conduct’ if, in the course of acting as a tax agent, that individual does something dishonest with a view to bringing about a loss of tax revenue.
‘Dishonest’ takes its ordinary meaning. Dishonest conduct includes
- dishonestly doing something,
- dishonestly omitting to do something, and
- advising or assisting a client to do something that the tax agent knows to be dishonest.
See CH181140 for guidance on the meaning of dishonesty.
It does not matter whether a loss of tax revenue actually occurs.
It also does not matter whether or not the individual is acting on the instruction of clients.
A ‘loss of tax revenue’ means that the client
- accounts for less tax than they are required to account for by law
- obtains more tax relief than they are entitled to obtain by law
- accounts for tax later than they are required to account for it by law, or
- obtains tax relief earlier than they are entitled to obtain it by law.
‘Tax relief’ includes
- any exemption from, or deduction or credit against or in respect of, tax, and
- any repayment of tax.