Tax agent blamed for $2m in unpaid liabilities

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The Supreme Court of NSW has ordered a taxpayer to pay the Deputy Commissioner of Taxation over $2 million in taxation liabilities after failing in her defence.

31 August 2026 By Carlos Tse 3 minutes read
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A taxpayer has fallen short at the Supreme Court of NSW after it determined that the Deputy Commissioner was entitled to judgment in the amount of over $2 million for her taxation liabilities.

The Deputy Commissioner won its claim to recover $2,343,858.26 in unpaid personal income taxation liabilities from Larah Bekas, after the court found that she had income tax liabilities over six years, shortfall interest charges, and general interest charges and failure to lodge penalties.

Bekas’ daughter submitted that “her mother was from a non-English speaking background and relied on Ms Shehab to assist her with official and legal communications”.

Further, her daughter added that they “believed that the new legal representatives were handling her case, but they learnt on 26 June 2025 that the lawyer handling the matter had misunderstood the dates and failed to file a defence within time.”

The court viewed this evidence in an unfiled affidavit.

The Deputy Commissioner’s claims

In its statement of claim, the Deputy Commissioner gave evidence that Bekas failed to pay income tax between tax years 2013 and 2019 by the notices of amended assessment due date on 14 October 2024.

 
 

“Liability for income tax and general interest charge (GIC) as at 6 November 2025 (the date the First Keys Affidavit was sworn) was $902,006.39,” the court said.

The total quantum of liabilities included shortfall interest charges, failure to lodge penalties, and general interest charges.

Bekas did not appear for the hearing but filed a defence, pleading objections to all of the Deputy Commissioner’s liability claims against her.

In her defence, Bekas said: “I relied on a previous tax agent who misled me and failed to lodge correct returns. I trusted their advice and was unaware that my tax affairs were not properly managed.”

The court found that Bekas did not file any evidence in support of her defence.

In light of Bekas’ defence, the court said: “I accept the Deputy Commissioner’s submission that Ms Bekas must do more than simply plead that the quantum of the debt is incorrect.”

The court determined that the Deputy Commissioner was entitled to judgment in an amount for Bekas’ taxation liabilities as at 25 August 2026.

Upon consideration of all evidence, the court rejected Bekas’ defence and awarded judgment in an amount of $2,343,858.26 and ordered her to pay costs.

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