Tax Practitioners Board v Hacker (No 3)

This matter concerns proceedings brought by the Tax Practitioners Board (TPB) against three respondents in respect of contraventions of the Tax Agent Services Act 2009 (Cth) (TAS Act) and contempt of court. The TPB sought injunctive and declaratory relief, pecuniary penalties, and costs. The respondents are David John Hacker (Mr Hacker), Osgs Pty Ltd (OSGS), and Naleview Pty Ltd (Naleview). The TPB brought the proceedings against Mr Hacker and OSGS in respect of contraventions of the TAS Act. Naleview was joined as a party to the proceedings by the TPB at a later stage. The proceedings against Naleview were brought in respect of contempt of court only. The TPB established that Mr Hacker, OSGS, and Naleview had contravened provisions of the TAS Act by providing tax agent services while unregistered. The TPB also established that Mr Hacker was guilty of contempt of court. The court was required to determine the appropriate relief and penalty to impose in respect of the contraventions of the TAS Act, the contempts, and the costs of the proceedings. The court found that the contraventions of the TAS Act were serious and deliberate. The court found that the contempts were wilful and contumacious. The court found that the respondents had not demonstrated sufficient contrition or co-operation with authorities. The court found that the contraventions of the TAS Act warranted pecuniary penalties. The court found that the contempts warranted imprisonment for Mr Hacker and a fine for OSGS. The court ordered that the respondents pay 35% of the TPB's costs of the proceedings on a party-and-party basis. The court ordered that Mr Hacker pay $106,875 in pecuniary penalties, OSGS pay $65,625 in pecuniary penalties, and Naleview pay $455,625 in pecuniary penalties. The court ordered that Mr Hacker be imprisoned for a total of 10 months and that OSGS pay a fine of $15,000. The court ordered that Mr Hacker be restrained from providing tax agent and BAS services for fee or reward, and that OSGS and Naleview be restrained from providing tax agent services for fee or reward, unless each respondent was registered to provide those services under the TAS Act. The court ordered that the respondents pay 35% of the TPB's costs of the proceedings on a party-and-party basis.