Hill v Tax Practitioners Board

This matter concerned an application by Mr Hill for review of decisions made by the Tax Practitioners Board (the Board). The Board had terminated Mr Hill's registration as a tax agent and determined that he would be ineligible to re-apply for registration for a period of five years. Mr Hill sought to have both the termination decision and the five-year ineligibility period set aside.

The primary legal issues before the Tribunal were whether Mr Hill was a fit and proper person to be a registered tax agent, and if not, what period of ineligibility to re-apply for registration was appropriate. The Board's decisions were based on Mr Hill's personal tax liabilities, outstanding tax liabilities of associated corporate entities, and his culpability for various lodgement and payment defaults, including superannuation guarantee charge and PAYG remission defaults, and an unpaid tax judgment debt.

The Tribunal considered the purpose of the *Tax Agent Services Act 2009* (TASA), which is to ensure tax agent services are provided to appropriate standards of professional and ethical conduct, and that a threshold eligibility requirement for registration is that an applicant be a fit and proper person. The Tribunal noted that the assessment of fitness and propriety is not limited to specific matters but must have regard to good fame, integrity, and character. While acknowledging the seriousness of the defaults and liabilities, the Tribunal found that the Board had overstated the total outstanding tax liabilities and had not adequately accounted for payments made. The Tribunal concluded that a five-year period of ineligibility was excessive and substituted a period of two years.

The Tribunal set aside the Board's decision to impose a five-year period of ineligibility and substituted a determination that Mr Hill would be ineligible to re-apply for registration as a tax agent for a period of two years from the date of the Board's original decision. The Tribunal affirmed the Board's decision to terminate Mr Hill's registration.