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$43,000 Penalty For Unregistered Tax Agent

Monday, May 26, 2014

$43,000 Penalty For Unregistered Tax Agent

The Federal Court of Australia has ordered Zada Dedic to pay a $43,000 penalty for providing tax agent services for a fee while not being a registered tax agent.

Ms Dedic, from Melbourne, was registered with the Tax Practitioners Board (TPB) as a BAS agent but was not registered as a tax agent when she prepared and lodged tax returns for clients of her accounting business.

The Court found Ms Dedic had contravened the Tax Agent Services Act 2009 on 86 separate occasions from July 2010 to October 2012 by preparing and lodging tax returns and charging a fee for these services. The Court found that the conduct was deliberate, as Ms Dedic was aware that she needed to be a registered tax agent in order to prepare the tax returns for a fee. Ms Dedic had previously applied for registration as a tax agent but the TPB refused her application because it was not satisfied that she met the relevant experience requirements for tax agent registration.

The Court also imposed a three year injunction which requires Ms Dedic to tell people who request her to provide tax agent services that she is not a registered tax agent and cannot charge a fee for any tax work.

Ian Taylor, Chair of the TPB, said “The penalty imposed by the Federal Court should be seen as a deterrent to unregistered agents. There are serious consequences for providing tax agent services, like preparing tax returns for a fee, if you are not registered as a tax agent with the TPB.”

Mr Taylor added, “If people are engaging someone to prepare and lodge their tax returns, they should check first that the person is registered with the TPB to provide those services, at tpb.gov.au/onlineregister

Anyone can make a complaint to the TPB if they feel a tax agent is not providing services to an appropriate standard, or if the person or entity they are dealing with is not registered, at tpb.gov.au/makeacomplaint

Further information about the Tax Practitioners Board

The Tax Practitioners Board regulates tax practitioners to protect consumers. The TPB aims to assure the community that tax practitioners meet appropriate standards of professional and ethical conduct.

Contact: communications [at] tpb.gov.au (subject: Communications) (Communications) or 02 6216 4916

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