CH883680 - Agent operational guidance: dishonest tax agents: penalties: penalty for dishonest conduct: interaction with other penalties

The penalties which are due will depend on whose tax return is affected by the tax agent’s dishonest conduct, which could be the

• tax returns of the tax agent’s clients
• tax agent’s personal returns
• tax returns of the tax agent and the tax agent’s clients.

Dishonest conduct affects only the tax returns of the tax agent’s clients

When the dishonest conduct affects only the tax agent’s clients you can charge the tax agent with a penalty for dishonest conduct under FA12/Sch38.

Whether you charge the clients a penalty will depend on their behaviour and involvement, but they cannot be charged a penalty for dishonest conduct.

Dishonest conduct only affects the tax agent’s personal returns

You can only charge the tax agent a penalty under FA12/Sch38 if they are not liable to a penalty under

• FA07/Sch24 (inaccuracies)
• FA08/Sch41 (failure to notify)
• FA09/Sch55 (failure to file on time).

Dishonest conduct affects both the tax returns of the tax agent and the tax agent’s clients

When the dishonest conduct affects the personal returns of the tax agent and the tax agent’s clients you can charge

• The tax agent a penalty for dishonest conduct under FA12/Sch38 in relation to their clients’ returns and a penalty depending on their behaviour in relation to their own returns.
• The tax agent’s clients a penalty depending on their behaviour and involvement. The clients cannot be charged a penalty for dishonest conduct.