Tax Practitioners Board v Zada Dedic [2014] FCA 307

Tax Practitioners Board v Zada Dedic [2014] FCA 307

Ms Dedic contravened s 50-5(1) of the Tax Agent Services Act 2009 (Cth) because she prepared and lodged income tax returns, those acts were tax agent services and not BAS services, she knew or ought reasonably to have known they were tax agent services because she completed tax agent declarations, she was not a registered tax agent, and the evidence, including tax invoices and bank payments equating to her standard fee, showed that she charged for the services. Declaratory and injunctive relief was appropriate to protect the public and to make clear that providing tax agent services for fee or reward without registration contravenes the Act.

Jurisdiction
Australia
Judgment Date
31 March 2014
Procedural Posture
Application by the Tax Practitioners Board for Pecuniary Penalties and Related Declaratory and Injunctive Relief for Alleged Contraventions of S 50 5(1) of the Tax Agent Services Act 2009 (cth). / Liability, Declaratory Relief and Injunctive Relief Determined; Question of Appropriate Penalty Stood Over for Further Hearing.
Outcome
Declaration and injunctive relief granted; costs ordered against the respondent; penalty hearing stood over.
Legal Topics
['unregistered Tax Agent Services' 'tax Agent Services Act 2009 (cth) S 50 5(1)' 'preparation and Lodgement of Income Tax Returns for Fee or Reward' 'declaratory Relief' 'injunctive Relief' 'pecuniary Penalties']
['taxation' 'regulatory Law'] ['unregistered Tax Agent Services' 'tax Agent Services Act 2009 (cth) S 50 5(1)' 'preparation and Lodgement of Income Tax Returns for Fee or Reward' 'declaratory Relief' 'injunctive Relief' 'pecuniary Penalties']

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Procedural Posture

Application by the Tax Practitioners Board for Pecuniary Penalties and Related Declaratory and Injunctive Relief for Alleged Contraventions of S 50 5(1) of the Tax Agent Services Act 2009 (cth). / Liability, Declaratory Relief and Injunctive Relief Determined; Question of Appropriate Penalty Stood Over for Further Hearing.

Legal Issues

  1. 1 ['Whether Ms Dedic contravened s 50-5(1) of the Tax Agent Services Act 2009 (Cth) by providing tax agent services for fee or reward while not registered as a tax agent.' 'Whether the 31 contested transactions involved a charge or reward for preparation and lodgement of income tax returns.' 'Whether declaratory relief should be granted.' 'Whether injunctive relief requiring disclosure to potential clients should be granted.' 'What pecuniary penalty should be imposed.']

Ratio Decidendi

Ms Dedic contravened s 50-5(1) of the Tax Agent Services Act 2009 (Cth) because she prepared and lodged income tax returns, those acts were tax agent services and not BAS services, she knew or ought reasonably to have known they were tax agent services because she completed tax agent declarations, she was not a registered tax agent, and the evidence, including tax invoices and bank payments equating to her standard fee, showed that she charged for the services. Declaratory and injunctive relief was appropriate to protect the public and to make clear that providing tax agent services for fee or reward without registration contravenes the Act.

Court Disposition

Declaration and injunctive relief granted; costs ordered against the respondent; penalty hearing stood over.

Orders

  • ['Declared that on 86 separate occasions between about July 2010 and October 2012 Ms Dedic supplied a tax agent service in contravention of s 50-5(1) of the Tax Agent Services Act 2009 (Cth).' 'For a period of 3 years from the date of the Order, unless registered as a tax agent, Ms Dedic must inform persons or...