The following case poses a warning to those who do not take the TASA registration requirements seriously.   One serious penalty though.

This month, the Federal Court of Australia  ordered Mr Peter Kolya to pay a $150,000 penalty and his company, HP Kolya Pty Ltd, to pay a $750,000 penalty for breaches of the Tax Agent Services Act 2009 (TASA). This is the largest penalty imposed for breaches of the Tax Agents Services Act.

Mr Kolya and his company were not registered tax agents or BAS agents, however from August 2011 until August 2013, Mr Kolya and his company prepared and lodged numerous income tax returns and business activity statements, made amendments to tax returns, and charged fees for these services.

Justice Foster noted that Mr Kolya’s conduct 'displayed a flagrant disregard for the relevant registration requirements under the TASA', and stated that the case required a strong response from the Court both to deter Mr Kolya and to 'make clear to others who may be minded to replicate his conduct that they should think very carefully before doing so because the penalties which will be imposed if caught will be significant.

It is good to see the Tax practioners Board supporting tax practioners from people offering BAS and tax services when not registered to do so, but remeber also that as registered BAS and tax agents we also need to be taking our responsibilities seriously.   This is always in te best interests of the clients we are engaged to serve.