An unregistered agent, who used the services myGov, 72time Kent Scott Hacker, was found to have illegally provided tax and BAS services for a fee, putting in risk the data of its customers. And now he faces a prison sentence and a fine from the Federal Court.
The Federal Court also accepted TPB's request for permanent lawsuits against Mr Hacker and the entities concerned, One Stop Global Staffing Pty Ltd (OSGS) and Naleview Pty Limited, from further provision of unregistered services of tax agents.
Working from an office in Brisbane and an office in Stafford in the northern suburbs of Brisbane, Mr. Hacker was found to have violated the tax law 45 times and his two companies 42 times.
Mr. Hacker, who was guiding them customers of to file through their myGov accounts, thus endangering both personal and finances He was also found guilty of contempt of court after he continued to provide services despite receiving a court order ordering him to stop doing so, in March 2019.
He told the court that he became a tax agent in 1972, but that his license expired in 1982/83 and he has been working as an accountant ever since.
Issuing his decision, the judge Darryl Rangiah said that a strong message should be sent to prevent others from providing tax services and BAS agents services without having registered with the TPB.
"Strict sanctions are needed to deter those who may find the registration requirement optional," Judge Rangiah said.
The President of the TPB, Ian Klug stated that the prison sentence and the heavy fine are a clear warning to unregistered agents.
"TPB will take strong action against those who act illegally and support the imposition of sanctions on Mr Hacker and his affiliates," said Mr Klug.
"For almost two years, Mr. Hacker ignored court orders and his behavior put his clients at risk and undermined the integrity of the tax system. "TPB will continue to target unregistered agents to ensure that the professional and ethical standards of the tax profession are maintained."
"The sentence, which carries a fine of more than $ 640.000 and imprisonment for Mr. Hacker, sends a strong message to other rogue advisers and the community that such illegal acts will not be tolerated."