Borella and Tax Practitioners Board (Taxation)

In *Borella and Tax Practitioners Board (Taxation)*, Mr Borella sought a stay of the Tax Practitioners Board's decision to terminate his tax agent registration and impose a two-year ban, pending his application for review. The dispute concerned whether a conditional stay should be granted, and specifically, whether a condition requiring Mr Borella to notify his clients of the Board's administrative action and the ongoing proceedings was appropriate.

The court was required to determine the factors relevant to granting a stay, including the prospects of Mr Borella's success on review, the consequences if a stay were not granted, and the public interest. It also had to consider the potential impact on the Board in carrying out its functions and whether the substantive application would be rendered nugatory. A key issue was the appropriateness of imposing a condition that Mr Borella inform his clients of the situation.

The court reasoned that Mr Borella bore the onus of establishing that a stay was warranted and that any conditions imposed were appropriate. Despite Mr Borella not filing evidence, the court considered submissions and documents. It noted Mr Borella's history of non-compliance with his personal taxation obligations and a previous agreement with the Board that he had breached. The court found that while a stay would not render the substantive review nugatory, the public interest in the integrity of the tax agent registration regime weighed in favour of imposing conditions. The court considered that Mr Borella's conduct, including repeated failures with his personal tax affairs and breaches of a formal agreement, raised concerns about his suitability as a tax agent.

Ultimately, the court ordered that the reviewable decisions be stayed, but on four conditions. Three conditions were agreed upon by the parties, and the fourth was the "Client Notification Condition," requiring Mr Borella to notify his clients of the Board's actions and the proceedings. The court was not persuaded that a stay should be granted without this additional condition, citing reservations about Mr Borella's prospects of success and the need to protect the public interest in the integrity of the tax agent registration regime.