A Brisbane-based tax agent has been jailed for seven and a half months and fined $640,000 as part of a Federal Court prosecution launched by the Tax Practitioners Board (TPB).
The TPB announced that the man, Kent Scott Hacker, had received the sentence for multiple offences under the Tax Agent Services Act 2009 (TASA).
The Court granted the TPB request for permanent injunctions against each entity, restraining Hacker, One Stop Global Staffing Pty Ltd (OSGS) and Naleview Pty Limited, from further provision of unregistered tax agent services. Hacker was also restrained from providing BAS services whilst unregistered.
The TPB issued a statement that the sentence represented a welcome outcome after a protracted investigation and litigation, during which Mr Hacker continued to act illegally.
The TPB said the action originated when the Australian Taxation Office (ATO) raided OSGS offices in November 2018 and uncovered evidence validating ATO suspicions that Hacker had been preparing and lodging tax returns for thousands of taxpayers whilst unregistered with the Board.
It said the TPB acted swiftly on the information, and by February 2019, had launched a Federal Court action against Hacker and his two companies.
During the proceedings, Hacker gave an undertaking to the Federal Court that he would stop providing tax agent services to clients for a fee or other reward but the TPB said that intelligence from the ATO confirmed that despite this undertaking, he continued to provide services to clients.
The TPB, concerned of the potential risk to the public, successfully sought a court order forcing Hacker to display large notices at the OSGS offices warning taxpayers of the risks of using his services.
In June 2020, the Federal Court ruled that Hacker and his businesses had repeatedly been in contempt of court. The court also found that Mr Hacker had contravened the TASA 45 times and his two companies 42 times.
Commenting on the outcome, TPB chair, Ian Klug said the TPB would act firmly against those that acted outside the law and supported the imposition of the penalties handed down to Hacker and his associated companies.
“The sentencing, fines of over $640,000 and the imprisonment of Mr Hacker, sends a strong message to other rogue advisers and the community that illegal acts of this nature will not be tolerated,” Klug said.
