Tax Practitioners Board v Li

In the Federal Court of Australia, the Tax Practitioners Board brought proceedings against Mr Cheng Cheng Li, also known as Tom Lee, for contravening section 50-20 of the Tax Agent Services Act 2009 (Cth). The issue before the Court was to determine the appropriate penalty for Mr Li's contraventions. The Court had to consider the relevant principles and factors to be taken into account when determining the penalty, including the principles of general deterrence, specific deterrence, and parity. The Court also had to consider the mitigating factors presented by Mr Li, such as his lack of intent to deceive and his cooperation with the Australian Taxation Office.

The Court found that the mitigating factors presented by Mr Li were relevant in determining the appropriate penalty. The Court also found that the termination of Mr Li's registration as a tax agent and the costs order he will have to meet as a result of this proceeding were sufficient punishment. The Court held that the seriousness of Mr Li's contraventions did not warrant subjugating him, his wife, their children, and the wider family they provide and care for, to any greater financial deprivation going forward.

The Court ordered that Mr Li should not be required to pay any penalty to the Commonwealth. The Court also ordered that the respondent pay the applicant's costs of the proceeding as agreed or taxed.