Tax Practitioners Board v Campbell [2012] FCA 1153

FEDERAL COURT OF AUSTRALIA

Tax Practitioners Board v Campbell [2012] FCA 1153 Citation: Tax Practitioners Board v Campbell [2012] FCA 1153

Parties: TAX PRACTITIONERS BOARD v MALCOLM ERNEST CAMPBELL

File number: NSD 451 of 2012

Judge: EMMETT J

Date of judgment: 24 August 2012

Legislation: Income Tax Assessment Act 1936 (Cth) s 251L Tax Agent Services Act 2009 (Cth) ss 50-5(1), 60-5

Date of hearing: 24 August 2012

Place: Sydney

Division: GENERAL DIVISION

Category: No catchwords

Number of paragraphs: 16

Counsel for the applicant: CP O'Donnell

Solicitor for the applicant: Australian Government Solicitor

Counsel for the respondent: The respondent did not appear

IN THE FEDERAL COURT OF AUSTRALIA NEW SOUTH WALES DISTRICT REGISTRY GENERAL DIVISION NSD 451 of 2012

BETWEEN: TAX PRACTITIONERS BOARD

Applicant

AND: MALCOLM ERNEST CAMPBELL

Respondent

JUDGE: EMMETT J DATE OF ORDER: 24 AUGUST 2012 WHERE MADE: SYDNEY

THE COURT DECLARES THAT:

1. On the 18 separate occasions detailed in Schedule A and Schedule B to this judgment, between about April 2010 and about November 2011, and in relation to the persons respectively described in Schedule A and Schedule B, the respondent, by providing to those persons a service: 1.1. that involved the respondent doing one or more of the following: 1.1.1. preparing a request for amendment of income tax return for individuals for each of a number of tax years for the person and forwarding them to the person with instructions to sign them and lodge them with the Australian Taxation Office (ATO); 1.1.2. requesting and receiving from the person information that was potentially relevant to the preparation of the person's income tax return, completing details of the person's income tax return in preparation for lodgement and forwarding the person's income tax return to the person with instructions to sign it and lodge it with the ATO; 1.2. for which the respondent received a monetary payment for providing the said service; 1.3. with knowledge of the matters referred to in sub-paragraphs 1.1 and 1.2 above; 1.4. while the respondent was not a registered tax agent pursuant to the Tax Agent Services Act 2009 (Cth) (the Tax Agents Act); 1.5. which was not a service relating to a business activity statement; and 1.6. which was not provided as a legal service; on each occasion: 1.7. by reason of the matters referred to in sub-paragraphs 1.1 and 1.2 above, provided a service that the person could reasonably be expected to rely upon to satisfy liabilities or obligations, or claim entitlements, that arise, or could arise, under a taxation law; and 1.8. by reason of the matters referred to in sub-paragraphs 1.1 to 1.7 above, provided a tax agent service in contravention of s 50-5(1) of the Tax Agents Act. THE COURT ORDERS THAT: 2. In respect of each of the 13 contraventions declared in paragraph 1, which related to the preparation of requests for amendment of income tax returns to the persons and on the dates set out in Schedule A, a pecuniary penalty of $4,000 be imposed on the respondent. 3. In respect of each of the 5 contraventions declared in paragraph 1, which related to the preparation of income tax returns for the persons and on the dates set out in Schedule B, a pecuniary penalty of $2,500 be imposed on the respondent. 4. The total of the pecuniary penalties payable by the respondent referred to in paragraphs 2 and 3 above is $64,500. 5. For a period of 3 years from the date of this order, if he is requested to provide to another person or entity a service relating to one or more of: 5.1. advising another person or entity in relation to their entitlements, liabilities or obligations in relation to an Australian taxation law; 5.2. completing for another person or entity a return or statement in relation to an Australian taxation law; or 5.3. lodging for another person or entity a return or statement in relation to a taxation law with the ATO; the respondent must, before providing or agreeing to provide the said service, and unless then registered as a tax agent pursuant to the Tax Agents Act, inform the person or entity of the matters referred to in paragraphs 1 to 8 in Form A annexed hereto and, if the person or entity still requests the service be performed by the respondent: 5.4. have the person or entity complete and sign Form A annexed hereto; 5.5. retain a copy of the completed and signed form for a period of 3 years; and 5.6. provide any such completed and signed form to the Tax Practitioners Board within 14 days of its request. 6. The respondent shall pay the costs of the applicant on a party and party basis, to be taxed if not agreed. 7. This order may be served on the respondent by emailing it to: mal-accountings@hotmail.com Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011