Tax Practitioners Board v Zada Dedic

The Tax Practitioners Board sought declaratory and injunctive relief against Zada Dedic in the Federal Court of Australia. The Board alleged that Ms Dedic had contravened section 50-5(1) of the Tax Agent Services Act 2009 by preparing and lodging income tax returns on behalf of clients without being registered as a tax agent. The Board further claimed that Ms Dedic charged or received other rewards for these services, thereby contravening the Act. Ms Dedic disputed the allegations and the case proceeded to the Federal Court to determine the validity of the Board's claims.

The primary legal issue before the court was whether Ms Dedic's actions constituted a contravention of section 50-5(1) of the Act. This section of the Act prohibits a person from providing a tax agent service unless they are registered as a tax agent, or otherwise exempted. The court had to determine whether the preparation and filing of tax returns, and the receipt of payment for these services, constituted "providing a tax agent service" within the meaning of the Act. Additionally, the court had to decide if Ms Dedic's actions were deliberate or inadvertent and whether they warranted the relief sought by the Board.

The court found that Ms Dedic's actions did indeed contravene section 50-5(1) of the Tax Agent Services Act. The preparation and filing of tax returns, along with the receipt of payment, constituted providing a tax agent service. The court was satisfied that Ms Dedic was aware of her need to be registered and had not sought registration. Consequently, the court granted the relief sought by the Board, including an order prohibiting Ms Dedic from providing certain tax services unless she was registered as a tax agent. The court also required Ms Dedic to provide detailed disclosures to clients before agreeing to provide these services, and to retain and furnish copies of these disclosures to the Board upon request. The court ordered a hearing for the consideration of further penalties and set the costs of the proceeding to be borne by Ms Dedic.

The court ordered that for a period of three years, Ms Dedic must inform any client of specific matters before providing tax services, have the client complete and sign a form acknowledging these matters, retain a copy of the signed form, and furnish a copy to the Board if requested. A hearing for potential penalties was scheduled for 5 May 2014, and Ms Dedic was ordered to pay the Board's costs of the proceeding. Non-compliance with these orders could result in criminal penalties for Ms Dedic.