Tax Practitioners Board v Hacker (No 3) [2020] FCA 1814

FEDERAL COURT OF AUSTRALIA

Tax Practitioners Board v Hacker (No 3) [2020] FCA 1814 File number: QUD 106 of 2019

Judge: RANGIAH J

Date of judgment: 18 December 2020

Catchwords: TAXATION – contraventions of ss 50-5(1) and 50-5(2) of the Tax Agent Services Act 2009 (Cth) – where contraventions established – whether declaratory and injunctive relief appropriate – imposition of pecuniary penalties CONTEMPT OF COURT – contempts by first and second respondent established – consideration of appropriate penalties – consideration of age and health of first respondent – where contempts were wilful and contumacious – imposition of sentence of imprisonment on first respondent – imposition of fine on second respondent COSTS – whether respondents should pay whole of applicant's costs – applicant succeeded on some issues and not others – costs apportioned COSTS – whether indemnity costs are appropriate – where substantial fines and sentences of imprisonment will be imposed on respondents – costs ordered on party-and-party basis

Legislation: Fair Work Act 2009 (Cth) s 546 Federal Court of Australia Act 1976 (Cth) s 31 Tax Agent Services Act 2009 (Cth) ss 2-5, 50-5, 50-10, 50-15, 50-35 and 70-5 Federal Court Rules 2011 (Cth) rr 42.11 and 42.12

Cases cited: Anchorage Capital Partners Pty Ltd v ACPA Pty Ltd (No 2) [2018] FCAFC 112 Australasian Meat Industry Employees' Union v Mudginberri Station Pty Ltd (1986) 161 CLR 98 Australian Building and Construction Commissioner v Construction, Forestry, Mining and Energy Union (2018) 262 CLR 157 Australian Competition and Consumer Commission v ABB Transmission and Distribution Ltd (No 2) (2002) 190 ALR 169; [2002] FCA 559 Australian Competition and Consumer Commission v Dynacast (Int) Pty Ltd (formerly Phoneflasher.com Pty Ltd) ACN 001 234 642 [2007] FCA 429 Australian Competition and Consumer Commission v Halkalia Pty Ltd (No 3) [2017] FCA 522 Australian Competition and Consumer Commission v INFO4PC.com Pty Ltd (2002) 121 FCR 24 Australian Competition and Consumer Commission v TPG Internet Pty Ltd (2013) 250 CLR 640 Australian Opthalmic Supplies Pty Ltd v McAlary-Smith (2008) 165 FCR 560 Australian Securities & Investments Commission v Soust (No 2) (2010) 78 ACSR 1; [2010] FCA 388 Bovis Lend Lease Pty Ltd v Construction Forestry Mining and Energy Union (No 2) [2009] FCA 650 Cadbury Schweppes Pty Ltd v Darrell Lea Chocolate Shops Pty Ltd (No 3) [2007] FCAFC 119 Commonwealth v Director, Fair Work Building Industry Inspectorate (2015) 258 CLR 482 Construction, Forestry, Mining and Energy Union v BHP Steel (AIS) Pty Ltd (2003) 196 ALR 350 Construction, Forestry, Mining and Energy Union v Cahill (2010) 194 IR 461 Construction, Forestry, Mining and Energy Union v Pilbara Iron Company (Services) Pty Ltd (No 4) (2012) 225 IR 113; [2012] FCA 894 Deputy Commissioner of Taxation v Hickey [1999] FCA 259 Director of Fair Work Building Industry Inspectorate v Cartledge (No 2) [2015] FCA 851 Dodds Family Investments Pty Ltd (formerly Solar Tint Pty Ltd) v Lane Industries Pty Ltd (1993) 26 IPR 261 Hughes v Western Australian Cricket Association Inc (1986) ATPR 40–748 Johnson v The Queen (2004) 205 ALR 346 Kazal v Thunder Studios Inc (California) (2017) 256 FCR 90 Kosciuszko Thredbo Pty Limited v ThredboNet Marketing Pty Limited (No 2) [2013] FCA 609 Louis Vuitton Malletier SA v Design Elegance Pty Ltd (2006) 149 FCR 494 Markarian v The Queen (2005) 228 CLR 357 Metcash Trading Limited v Bunn (No 6) [2009] FCA 266 Mill v The Queen (1988) 166 CLR 59 Minister for the Environment & Heritage v Greentree (No 3) [2004] FCA 1317 Mornington Inn Pty Ltd v Jordan (2008) 168 FCR 383 NW Frozen Foods v Australian Competition and Consumer Commission (1996) 71 FCR 285 Oshlack v Richmond River Council (1998) 193 CLR 72 Parker v Australian Building and Construction Commissioner (2019) 270 FCR 39 Pattinson v Australian Building and Construction Commissioner (2020) 384 ALR 75; [2020] FCAFC 177 Pelechowski v Registrar, Court of Appeal (NSW) (1999) 198 CLR 435 Pinnacle Runway Pty Ltd v Triangl Ltd (No 3) [2020] FCA 1379 R v Smith (1987) 44 SASR 587 Re Wilcox; Ex Parte Venture Industries Pty Ltd (No 2) (1996) 72 FCR 151 Rural Press Ltd v Australian Competition and Consumer Commission (2003) 216 CLR 53 Singtel Optus Pty Ltd v Australian Competition and Consumer Commission (2012) 287 ALR 249 Sydney Medical Service Co-operative Limited v Lakemba Medical Services Pty Ltd (No 2) [2016] FCA 1188 Tax Practitioners Board v Campbell [2012] FCA 1153 Tax Practitioners Board v Dedic [2014] FCA 511 Tax Practitioners Board v Hacker [2020] FCA 1047 Tax Practitioners Board v Hacker (No 2) [2020] FCA 1048 Tax Practitioners Board v Hinckfuss [2013] FCA 1168 Tax Practitioners Board v Hogan [2012] FCA 642 Tax Practitioners Board v HP Kolya Pty Ltd (2015) 232 FCR 34 Tax Practitioners Board v Lamede Group Pty Ltd [2016] FCA 63 Tax Practitioners Board v Munro [2012] FCA 1338 Tax Practitioners Board v Shanahan [2013] FCA 764 The State of Victoria v Sportsbet Pty Ltd (No 2) [2012] FCAFC 174 Trade Practices Commission v CSR Ltd [1990] FCA 521 Transport Workers' Union of Australia v Registered Organisations Commissioner (No 2) (2018) 267 FCR 40 Vaysman v Deckers Outdoor Corporation Inc (2011) 276 ALR 596; [2011] FCAFC 17 Witham v Holloway (1995) 183 CLR 525 Wong v The Queen (2001) 207 CLR 584