Tax Practitioners Board v Van Stroe (No 2)

The Tax Practitioners Board filed a civil penalty application against Ms Van Stroe for multiple breaches of the Tax Agent Services Act 2009 (Cth). Ms Van Stroe, who was neither registered nor licensed to provide tax agent services, engaged in a pattern of conduct involving the preparation and lodging of tax returns for multiple taxpayers, charging them for her services. The Tax Practitioners Board had previously notified Ms Van Stroe of the potential consequences of her conduct, yet she continued to provide such services, earning approximately $99,590 in the process. The primary legal issue for the court was the appropriate penalty to impose on Ms Van Stroe for her continued provision of unlicensed tax agent services, despite prior warnings and the risk of legal action. The court had to balance the need for specific deterrence, to prevent Ms Van Stroe from repeating her actions, with the need for general deterrence, to discourage others from engaging in similar conduct.

The court found Ms Van Stroe's actions to be serious and deliberate, with significant potential harm to the taxpayers involved. It noted the importance of the licensing regime under the Tax Agent Services Act and the need to protect the integrity of the tax system. The court held that a penalty sufficient to strip Ms Van Stroe of her financial gain was necessary to achieve specific deterrence. Additionally, a strong general deterrent was essential to ensure the Act's purpose was upheld and to prevent others from engaging in similar conduct. The court imposed a pecuniary penalty of $230,000 on Ms Van Stroe, while also ordering her to pay the Tax Practitioners Board's costs.