The Tax Practitioners Board (TPB) has advised that the Federal Court last week ordered a man to pay a $40,000 penalty for breaches of the Tax Agent Services Act 2009. The Court found the man was operating as a tax agent, including preparing income tax returns, charging people for this service while unregistered and advertising his services. The man must also, for a period of 3 years, advise people that he is not a registered tax agent and cannot charge a fee for any tax work.
The Board reported the man had admitted to providing tax agent services for a fee on 132 separate occasions while unregistered. This resulted in a $35,000 penalty. The Board said the man also admitted to advertising tax agent services on 3 occasions while unregistered. This brought a penalty of $5,000. The Board said it launched its investigation of the man’s activities after receiving complaints from taxpayers who alleged the man had charged fees for tax agent services and had been advertising as a registered agent while unregistered.
“The Federal Court, Brisbane, last week ordered Trevor Schmierer to pay a $40,000 penalty for breaches of the Tax Agent Services Act 2009.
The Court found that Mr Schmierer was operating as a tax agent, including preparing income tax returns, charging people for this service while unregistered and advertising his services, contrary to the law.
Justice Reeves ordered Mr Schmierer to pay the Tax Practitioners Board’s (TPB) costs. Mr Schmierer must also, for a period of three years, advise people he is not a registered tax agent and cannot charge a fee for any tax work.”
Source: TPB media release, 14 September 2012.
[LTN 179, 14/9]