Tax Practitioners Board v Su

The Federal Court of Australia was asked to determine the appropriate penalty for Tsu Chien Su, a registered tax agent, for his reckless conduct in contravention of section 50-20 of the Tax Agent Services Act 2009 (Cth). The Tax Practitioners Board sought declarations against and the imposition of a pecuniary penalty on the respondent for his conduct in lodging 25 false income tax returns on behalf of taxpayers. The Board contended that the penalty should reflect the seriousness of the contraventions, while the respondent argued for a lower penalty, given the absence of dishonesty, early admission of the contraventions, and his limited financial gain. The Court considered various principles of penalty determination, including proportionality, deterrence, rehabilitation, and the principle of totality. The Court held that the penalty should not be disproportionate to the objective seriousness of the conduct, and that the respondent's early admission and limited financial gain should be taken into account. The Court ultimately determined that an appropriate penalty would be $70,000, payable over seven years in instalments of $10,000. The Court also ordered declarations to be made as sought by the Board, with amendments to reflect that the respondent was reckless, rather than knowingly making false statements.