The Tax Practitioners Board (TPB) has terminated the tax agent registration of former PricewaterhouseCoopers (PwC) partner, Richard Gregg and imposed a 4-year ban prohibiting him from re-applying for registration.
Mr Gregg was found to have breached multiple obligations under the Tax Agent Services Act 2009 and the Code of Professional Conduct, which all registered tax practitioners must comply with. In light of this, the TPB found he was no longer fit and proper to be registered as a tax agent.
In his capacity as a PwC partner and a specialist in Research & Development, Mr Gregg made false or misleading statements in applications for the Research & Development Tax Incentive (RDTI) lodged on behalf of clients. These applications did not meet the eligibility requirements for the RDTI and could not be substantiated. Mr Gregg’s failure to scrutinise his clients’ RDTI claims resulted in significant tax shortfalls and penalties imposed on the clients. Mr Gregg’s behaviour also resulted in significant time and resources being expended by the Australian Taxation Office (ATO) and Industry Innovation and Science Australia, both of which are responsible for fairly assessing RDTI applications.
The ATO determined the clients affected by Mr Gregg’s conduct had a cumulative tax shortfall of over $11 million and imposed cumulative penalties of over $800,000 across those clients.
Chair of the TPB, Mr Peter de Cure AM, said ‘Clients rely on registered tax practitioners to provide a competent service. If tax practitioners act carelessly, it’s the clients who end up paying. In this case, Mr Gregg’s clients were reliant on his RDTI expertise, and they now face penalties due to his negligence and disregard for the law.’
Mr de Cure went on to say ‘There is no place in the tax and super systems for tax practitioners lacking integrity. Such actions pose a serious risk to the tax profession. We expect a high standard from registered tax practitioners. Anything less jeopardises the public, who trust tax practitioners to get their tax and super affairs right.’
‘The Government’s RDTI program is all about boosting the country’s competitiveness and productivity. It encourages businesses of all sizes to engage in research and development projects they might not otherwise pursue. The program is especially helpful in supporting smaller companies, making the incentives less complex. Given the specialised nature of Research & Development and the recent issues we have seen in this area, it will be one of our compliance focuses for 2025-26.’
