The Federal Court has granted an application by the Tax Practitioners Board for the imposition of civil penalties under the Tax Agent Services Act 2009 (TASA), together with declaratory and injunctive relief in respect of numerous contraventions of the TASA alleged against the respondent.
The Court noted the parties had agreed to a penalty of $30,000 and a contribution of id=”mce_marker”,000 towards the Board’s costs (the original penalty sought was $45,000 plus id=”mce_marker”,000 for the Board’s costs).
The Court heard the respondent had provided tax agent services to 28 clients for fees when he was not a registered tax agent over the period May 2010 to June 2012 resulting in 47 separate contraventions of s 50-5(1) of the TASA. The respondent had also provided BAS services in respect of 2 financial years in relation to one client for reward of which contraventions of s 50-5(2) occurred. In addition, the respondent had used letterhead when rendering fees that had represented that he was a registered tax agent in contravention of s 50-15.
- The Court noted the respondent’s evidence describing personal and financial burdens and was satisfied the respondent appreciated his wrongdoing.
- The Court also noted the Board had not suggested the respondent had acted in way that had caused any of his clients to fail to comply with their tax obligations.
- It also noted the positive view of the respondent by his current employer.
- However, the Court noted the respondent had lodged income tax returns through the ATO tax agent portal using the tax agent number of an associate without that tax agent’s knowledge.
In conclusion, the Court was satisfied with the agreed penalty of $30,000 with id=”mce_marker”,000 in respect of the Board’s costs to be paid by instalment over the next 6 years.
It also ordered that for a period of 3 years the respondent must, unless relevantly registered or working under supervision, inform any potential client of certain matters as specified in Form A annexed to the judgment.
(Tax Practitioners Board v Shanahan [2013] FCA 764, Federal Court, Rares J, 19 July 2013.)
[LTN 149, 5/8/13]