S & T Income Tax Aid Specialists Pty Ltd trading as Alpha Tax Aid and Tax Practitioners Board (Taxation)

The Administrative Appeals Tribunal considered an application by S & T Income Tax Aid Specialists Pty Ltd, trading as Alpha Tax Aid, for a stay of a decision by the Tax Practitioners Board to terminate the company's tax agent registration. The dispute centred on allegations that Alpha Tax Aid had failed to provide competent tax agent services, specifically in relation to certain deductions claimed for clients.

The Tribunal was required to determine whether to grant a stay of the Board's decision pending the final determination of Alpha Tax Aid's application for review. In making this determination, the Tribunal considered various factors, including the prospects of success of the substantive application, the consequences for the applicant if a stay were refused, the public interest, the consequences for the respondent in carrying out its functions, and whether the review would be rendered nugatory without a stay. The core of the substantive proceedings involved assessing whether Alpha Tax Aid had breached subsection 30-10(7) of the Code of Conduct by failing to provide competent tax agent services, rather than solely determining the deductibility of specific expenses.

The Tribunal reasoned that while the allegations against Alpha Tax Aid were yet to be fully tested, the public interest favoured granting a stay with specific conditions. These conditions were designed to balance the consequences for the applicant and third parties with the public interest. The Tribunal noted that many clients affected by the audit had faced substantial financial penalties, and therefore, it was appropriate for current clients to be informed of the scrutiny of the applicant's services. This would allow them to make informed decisions about their tax affairs, particularly during the critical 2019 tax season.

Consequently, the Tribunal ordered that the termination of Alpha Tax Aid's registration be stayed, subject to several conditions. These included the discharge of an interim stay, the applicant sending an approved letter to its current clients informing them of the termination decision and the appeal, all tax agent services being supervised by named registered tax agents employed by the applicant, and an undertaking by the applicant not to engage new clients.