iscover Federal Court issues orders against unregistered tax preparer
TaxThe court has found that an unregistered tax preparer breached the civil penalty provisions by providing services that constituted tax agent services without holding a registration.
In a recent default judgement, the Federal Court has determined that a business performing tax preparation and tax return lodgements contravened section 50-5(1) of the Tax Agent Services Act 2009 (TASA) 14 times by providing registered tax agent services whilst unregistered.
Back in 2018, the Tax Practitioners Board had alleged that Anthony Dean Buckland and his business Apat na Seasons Pilipinas Corporation (Apat) had contravened the Tax Act by providing tax agent services, including the preparation and lodgment of income tax returns for Australian taxpayers for a fee or other reward, without holding a registration as a tax agent. Anthony Dean Buckland was the director of Apart until at least November 2022.
The TPB issued correspondence to Buckland around July 2018, advising him that the board had received information alleging that Buckland had provided tax agent services for a fee or other reward whilst unregistered.
The TPB pleaded that Apat, through its officers, servants, agents or other representatives, prepared and lodged with the Commissioner of Taxation 14 income tax returns for eight individuals.
It also pleaded that the services provided by Apat constituted a tax agent service within the meaning of the TASA.
The board said the services constituted a tax agent service because each of the services were related to ascertaining liabilities, obligations or entitlements of the taxpayers that arose, or could arise, under a taxation law; were related to representing the taxpayers in their dealings with the Commissioner of Taxation, and were provided in circumstances where the taxpayers could reasonably be expected to reply on the preparation and lodgment of the income tax returns.
The TPB also claimed that Apat knew or ought to have known that the services it provided were characterised as tax agent services.
It noted that Buckland was the director of Apat until around November 2022 and the board had issued correspondence to Buckland in July 2018 advising that the board had received information that he had been providing tax agent services for a fee or other reward while unregistered.
It also noted that Apat repeatedly provided income tax return preparation and lodgement services and interacted with the ATO and MyGov.
The TPB also said that around December 2021, Apat issued correspondence to the TPB stating that it had been informed that the board had been writing to various parties in relation to financial services provided by the first respondent.
Apat had provided some services in the name of Buckland, and that the bookkeeping and accounting services that Apat provided were purportedly provided under the auspices of international law agreements and treaties, none of which had been enacted into Australian domestic law, the board said.
After Apat failed to participate in any meaningful part of the proceeding, the Federal Court ordered that judgement be entered against Apat for 14 contraventions of section 50-5(1) of the TASA.
Justice Hespe also ordered that Apat, along with its officers, servants and agents, be permanently restrained from providing tax agent services for a fee or other reward whilst not registered as a tax agent.
The court also ordered the TPB to file and serve on Buckland and Apat written submissions in relation to determining the quantum of any pecuniary penalties to be imposed upon Apat in respect of its contraventions of the TASA, in addition to the question of costs.
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Miranda Brownlee
Miranda Brownlee is the editor of Accountants Daily and Accounting Times, the leading sources of news, insight, and educational content for professionals in the accounting sector.
Miranda has over a decade of experience reporting on the financial services and accounting sectors, working on a range of publications including SMSF Adviser, Investor Daily and ifa.