TPB cancels Xact Taxation registration over compliance breaches

The Tax Practitioners Board (TPB) in Australia has cancelled the official registration of Xact Taxation, an entity formerly operating under the name Tax Refund on Spot, over identity-checking and record-keeping failures.

The regulatory authority established that the business had breached several sections of the Code of Professional Conduct and failed to satisfy ongoing licensing standards.

As a result, the company has been issued a three-year ban on seeking re-registration.

The watchdog found that the company accessed clients’ Australian Taxation Office records without authorisation, falsified proof-of-identity documents and falsely claimed to have completed identity checks.

Furthermore, the enterprise provided monetary settlements to customers on the condition that they refrained from lodging formal grievances.

It also utilised contractual terms that permitted the business to retain protracted control over customer accounts and channel tax repayments directly into its own trust account.

TPB determined that the agency failed to deliver tax services competently.

Failures included inadequate identity checks, poor record-keeping, unverified changes to clients’ bank details and insufficient oversight before tax returns were lodged.

These collective operational breakdowns resulted in tax returns being submitted without client consent and the rerouting of customer refunds.

TPB chair Peter de Cure said: “Tax practitioners play a trusted role in the tax system and are expected to meet high standards of competence, integrity and client care.

“Where those standards are not met, the TPB will take appropriate action to protect consumers and uphold confidence in the profession.

“This case involved serious failures in client identity verification, record keeping and practice governance. These failures enabled tax returns to be lodged without proper authorisation and exposed clients to significant risk.

“Identity verification is not simply an administrative step. It is a fundamental safeguard that helps protect clients from fraud, unauthorised access to their information and the misuse of their tax affairs.”

Last month, TPB cancelled C&N Southwest Sydney’s registration after identifying serious professional conduct breaches.