Yahoo Finance Man cops $640k fine, 7 months’ jail for dodgy tax returns
A man who unlawfully prepared and lodged thousands of tax returns has been fined $640,000 and sentenced to 7.5 months in jail.
In November 2018, the Australian Taxation Office (ATO) raided Brisbane-based Kent Scott Hacker’s office and found evidence that Hacker had been lodging dodgy tax returns while being unregistered with the Tax Practitioner’s Board (TPB).
The evidence was enough for the TPB to launch a Federal Court action against Hacker and his two companies in February 2019.
Hacker was ultimately sentenced on 18 December 2020 – but during the investigation was uncooperative, continuing to act illegally while investigation and litigation were still underway.
While proceedings were being launched, Hacker told the Federal Court he would stop providing paid tax agent services to clients.
But despite Hacker’s undertaking, he continued to do so, and TPB was enforced a court order that ordered Hacker to display large notices at his office warning Australians of the risks of using his services.
Not only that, but in June 2020 the Federal Court found Hacker repeatedly in contempt of court and had personally contravened the Tax Agent Services Act 2009 45 times.
“For nearly two years, Mr Hacker has brazenly and consistently ignored court orders and his behaviour has put his clients at risk and undermined the integrity of the taxation system,” said TPB chair Ian Klug.
“The TPB will continue to target unregistered preparers to ensure the professional and ethical standards of the tax profession is maintained.”
Those who act outside the law will be “act[ed] firmly against,” Klug added.
“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.”
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