Frugtniet v Tax Practitioners Board

The case of Frugtniet v Tax Practitioners Board involves an appeal by the applicant, Frugtniet, against the Administrative Appeals Tribunal’s (AAT) decision to affirm the termination of his registration as a tax agent and to preclude him from applying for registration for a period of five years. The AAT had earlier reviewed the decision of the Tax Practitioners Board, which had terminated Frugtniet’s registration. The central issue before the court was whether the AAT’s decision was vitiated by apprehended bias and a denial of natural justice. The applicant argued that the Tribunal's composition, which included members who had been involved in a previous adverse decision against him, led to a reasonable apprehension of bias.

The court needed to determine if Frugtniet had valid grounds to object to the constitution of the AAT panel due to a reasonable apprehension of bias, and whether his participation in the hearing after his objection was rejected amounted to a waiver of his right to challenge the panel’s composition. Additionally, the court had to consider whether Frugtniet’s right to natural justice was compromised by the Tribunal's composition. The court found that the Tribunal's composition did indeed give rise to a reasonable apprehension of bias, and that Frugtniet did not waive his right to object by participating in the hearing.

Upon finding that the AAT’s decision was indeed affected by apprehended bias and a denial of natural justice, the court allowed the appeal. The decision made by the AAT on 23 October 2014 was set aside, and the applicant’s application for review was remitted for hearing and determination by a differently constituted Tribunal. Frugtniet was granted leave to apply for an order entitling him to payment of his out-of-pocket expenses and costs incurred in connection with the proceeding in the AAT, within 14 days.