Tax Practitioners Board v Dedic [2014] FCA 511

Tax Practitioners Board v Dedic [2014] FCA 511

A pecuniary penalty of $43,000, or $500 for each of the 86 contraventions of s 50-5(1) of the Tax Agent Services Act 2009, is appropriate to achieve specific and general deterrence given the deliberate nature of the offending and despite the respondent’s limited ability to pay, considering comparable penalties and the statutory purpose.

Parties
Applicant: Tax Practitioners Board; Respondent: Zada Dedic
Jurisdiction
Australia
Judgment Date
20 May 2014
Procedural Posture
Civil Penalty Proceeding / Penalty Hearing
Outcome
Pecuniary penalty imposed; orders made for instalment payments and costs.
Legal Topics
Pecuniary Penalties, Unregistered Tax Agent Services, Deterrence, Contraventions of Tax Agent Services Act 2009
Taxation Law Administrative Law Pecuniary Penalties Unregistered Tax Agent Services Deterrence Contraventions of Tax Agent Services Act 2009

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Parties

Tax Practitioners Board

Applicant

Zada Dedic

Respondent

Procedural Posture

Civil Penalty Proceeding / Penalty Hearing

Legal Issues

  1. 1 Whether civil penalties should be imposed for contraventions of s 50-5(1) of the Tax Agent Services Act 2009 (Cth)
  2. 2 Appropriateness of the amount of pecuniary penalty
  3. 3 Permissibility of submissions by regulators as to the appropriate penalty range in civil penalty proceedings

Ratio Decidendi

A pecuniary penalty of $43,000, or $500 for each of the 86 contraventions of s 50-5(1) of the Tax Agent Services Act 2009, is appropriate to achieve specific and general deterrence given the deliberate nature of the offending and despite the respondent’s limited ability to pay, considering comparable penalties and the statutory purpose.

Court Disposition

Pecuniary penalty imposed; orders made for instalment payments and costs.

Orders

  • The respondent must pay a pecuniary penalty of $43,000 for 86 contraventions of s 50-5(1) of the Tax Agent Services Act 2009 (Cth).
  • The penalty is to be paid to the Commissioner of Taxation on behalf of the Commonwealth in five equal instalments of $8,600 on or before 30 June of each year from 2015 to 2019.