15False or misleading statements

15 False or misleading statements

Statements made to the Board or the Commissioner (1) You must not: (a) make a statement to the Board or the Commissioner; or (b) prepare a statement that you know, or ought reasonably to know, is likely to be made to the Board or Commissioner by an entity; or (c) permit or direct someone else to make or prepare such a statement; that you know, or ought reasonably to know, is false or misleading in a material particular, or omits any matter or thing without which the statement is misleading in a material respect, in your capacity as a registered tax agent or BAS agent or in any other capacity.

Note: For further obligations relating to false or misleading statements to the Commissioner see section 50‑20 of the Act.

Responding to a false or misleading statement made to the Board or Commissioner (2) Where: (a) a statement has been given to the Board or Commissioner; and (b) one of the following applies: (i) you made the statement, or permitted or directed someone else to make the statement, other than for a client; or (ii) for an entity that was your client at the time the statement was given to the Board or Commissioner, you made or prepared the statement, or permitted or directed someone else to make or prepare the statement; and (c) at a time after the statement was made, you have reasonable grounds to believe that the statement: (i) was false or misleading in a material particular at the time it was made; or (ii) omitted any matter or thing, at the time it was made, without which the statement at that time is misleading in a material respect; and (d) you also have reasonable grounds to believe that the false or misleading nature of the statement resulted from: (i) a failure to take reasonable care in connection with the preparation or making of the statement; or (ii) recklessness as to the operation of a taxation law; or (iii) intentional disregard of a taxation law; within a reasonable period of time after you come to believe that the statement given satisfies paragraph (c), you must take each of the actions set out in an item of the following table when the situation described in that item of the table applies:

<table cellspacing="0" cellpadding="0" style="width:415.6pt; margin-left:5.65pt; border-collapse:collapse"><thead><tr><td colspan="3" style="width:404.8pt; border-top:1.5pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Responding to a false or misleading statement</span></p></td></tr><tr><td style="width:24.9pt; border-top:1.5pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Item</span></p></td><td style="width:179.15pt; border-top:1.5pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Column 1</span></p><p class="TableHeading"><span>In this situation:</span></p></td><td style="width:179.15pt; border-top:1.5pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Column 2</span></p><p class="TableHeading"><span>You must take all reasonable steps to:</span></p></td></tr></thead><tbody><tr><td style="width:24.9pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>1</span></p></td><td style="width:179.15pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>where you made the statement or permitted or directed someone else to make the statement (other than a statement made for a client)</span></p></td><td style="width:179.15pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>have the statement corrected.</span></p></td></tr><tr><td style="width:24.9pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>2</span></p></td><td style="width:179.15pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>where you made or prepared the statement, or permitted or directed someone else to make or prepare the statement, for a client</span></p></td><td style="width:179.15pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>advise your client about all of the following:</span></p><p class="Tablea"><span>(a) that the statement should be corrected;</span></p><p class="Tablea"><span>(b) the possible consequences of </span><span style="font-style:italic">not</span><span> taking action to correct the statement.</span></p><p class="Tabletext"><span>However, this item does </span><span style="font-style:italic">not</span><span> apply to the extent that doing so would be unlawful under another Australian law.</span></p></td></tr><tr><td style="width:24.9pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>3</span></p></td><td style="width:179.15pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>where:</span></p><p class="Tablea"><span>(a) you made or prepared the statement, or permitted or directed someone else to make or prepare the statement, for a client; and</span></p><p class="Tablea"><span>(b) after a reasonable period of time after taking the steps mentioned in item 2 of this table, you are </span><span style="font-style:italic">not</span><span> reasonably satisfied that your client has corrected the statement or otherwise adequately explained the basis for the statement; and</span></p><p class="Tablea"><span>(c) either subparagraphs (2)(d)(ii) or (iii) are satisfied in relation to the false or misleading nature of the statement</span></p></td><td style="width:179.15pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>withdraw from the engagement, and professional relationship, with your client (including no longer providing any further tax agent services to your client).</span></p><p class="Tabletext"><span>However, this item does </span><span style="font-style:italic">not</span><span> apply to the extent that:</span></p><p class="Tablea"><span>(a) doing so would pose an unreasonable risk to your personal safety, or the safety of a member of your family or an at risk staff member of yours; or</span></p><p class="Tablea"><span>(b) doing so would be unlawful under another Australian law.</span></p></td></tr><tr><td style="width:24.9pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>4</span></p></td><td style="width:179.15pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>where:</span></p><p class="Tablea"><span>(a) you made or prepared the statement, or permitted or directed someone else to make or prepare the statement, for a client; and</span></p><p class="Tablea"><span>(b) after a reasonable period of time after taking the steps mentioned in item 2 of this table, you are </span><span style="font-style:italic">not</span><span> reasonably satisfied that your client has corrected the statement or otherwise adequately explained the basis for the statement; and</span></p><p class="Tablea"><span>(c) either subparagraphs (2)(d)(ii) or (iii) are satisfied in relation to the false or misleading nature of the statement; and</span></p><p class="Tablea"><span>(d) you have reasonable grounds to believe your client’s actions have caused, are causing, or may still cause, substantial harm to the interests of others (including investors, creditors, employees, or the public)</span></p></td><td style="width:179.15pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>notify the Board or Commissioner (as the case requires) that you have advised your client that a statement made to the Board or Commissioner should be corrected and you are </span><span style="font-style:italic">not</span><span> reasonably satisfied that your advice was acted upon.</span></p><p class="Tabletext"><span>However, this item does </span><span style="font-style:italic">not</span><span> apply to the extent that:</span></p><p class="Tablea"><span>(a) doing so would pose an unreasonable risk to your personal safety, or the safety of a member of your family or an at risk staff member of yours; or</span></p><p class="Tablea"><span>(b) doing so would be unlawful under another Australian law.</span></p></td></tr><tr><td style="width:24.9pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>5</span></p></td><td style="width:179.15pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tablea"><span>the same as for item 4</span></p></td><td style="width:179.15pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>take any further action as you reasonably consider is needed in the public interest.</span></p><p class="Tabletext"><span>However, this item does </span><span style="font-style:italic">not</span><span> apply to the extent that:</span></p><p class="Tablea"><span>(a) doing so would pose an unreasonable risk to your personal safety, or the safety of a member of your family or an at risk staff member of yours; or</span></p><p class="Tablea"><span>(b) doing so would be unlawful under another Australian law.</span></p></td></tr></tbody></table>