Tax Practitioners Board v Stroe

The Tax Practitioners Board brought proceedings against Stroe seeking a declaration, injunction, and pecuniary penalty for alleged contraventions of the Tax Agent Services Act 2009 (Cth). Stroe failed to engage with the proceedings in a meaningful way, resulting in a number of defaults. The Board applied for a default judgment, which Stroe opposed. The court had to decide whether it was appropriate to enter a default judgment in the circumstances of this case. The court found that Stroe had not engaged in the proceedings, had not responded to communications from the Board's solicitors, and had failed to file a defence. The court found that the Board had established the respondent's contraventions and that the Board was entitled to the relief claimed. The court exercised its discretion to enter a default judgment, permanently restraining Stroe from providing tax agent services for a fee or other reward while not a registered tax agent, and listing the matter for a hearing to determine the quantum of any pecuniary penalties to be imposed. Costs were reserved.