A Canberra-based “tax agent” and his company have been issued with a record penalty for a series of breaches of the Tax Agent Services Act 2009 (TASA).
The Federal Court of Australia ordered that Peter Kolya pay a $150,000 penalty and his company, HP Kolya, pay a $750,000 penalty, plus costs as a result of the breaches.
Court documents revealed that Kolya had throughout the period 2001—2010, Kolya operated his business by claiming that H&R Block was his supervising agent and that he was entitled to use tax agent No. 66837074 which was one of H&R Block’s tax agent numbers.
However, the court found Kolya was not entitled to use that tax agent number and his claim to have been operating under the auspices of H&R Block was completely false.
In 2008, H&R Block became aware of Kolya’s activities. As a result, through its solicitors, it immediately took steps to require Kolya to cease representing that he had an appropriate connection with H&R Block.
The Tax Practitioners Board presented evidence that Koyla:
- “Knew that the pleaded conduct was in breach of the TAS Act;
- Knew that he was engaging in conduct which he had been prohibited from undertaking by various decisions of courts and tribunals;
- Was well aware of the likely harm his continued conduct of his business was likely to cause; and
- Has never shown any contrition whatsoever for the pleaded conduct and appears to have no appreciation of its seriousness.”
The court found that Koyla’s conduct “displayed a flagrant disregard for the relevant registration requirements under the TASA”.
Alongside fines of $900,000, the court has imposed a 10-year injunction against Koyla and his company, prohibiting them from providing or advertising tax agent services of BAS services.
