Sydney man handed $1.8 million fine after illegally preparing thousands of tax returns

Australia's Federal Court has imposed its largest civil penalty to date on a Sydney man for illegally preparing thousands of tax returns over a four-year period.

Jayden Van Dyke has been fined $1.8 million after admitting to preparing and lodging 3,300 income tax returns despite not being a registered tax agent.

The court has also ordered Van Dyke to cover the Tax Practitioners Board's (TPB) costs and has permanently barred him from providing tax agent services for any fee or reward while unregistered.

If he breaches the order, Van Dyke may face imprisonment or other penalties for contempt.

Justice Abraham found that Van Dyke's conduct was deliberate and aimed at financial gain.

The court heard that he obtained $1.6 million, typically charging $500 for each income tax return he prepared and lodged.

Van Dyke was able to lodge the tax returns by obtaining the taxpayer's MyGov login details.

Van Dyke continued providing services even after receiving a cease-and-desist letter from the TPB but concealed his income from the ATO by omitting it in his personal tax returns.

An ATO audit in 2023 for income years between 2019 and 2022 led to an order to pay back $2 million in taxes and a $785,543 administrative penalty.

Van Dyke declared bankruptcy on 16 April 2024.

"Mr Van Dyke sought to minimise his conduct, giving explanations which downplayed the circumstances in which he committed the contraventions," Justice Abraham said.

"The respondent's counsel sought to advance this as a positive attribute, being evidence that Mr Van Dyke appreciates the seriousness of the position he is in.

"I do not accept that submission...That said, this was deliberate, repeated, and sustained conduct, which continued (seemingly unabated initially, but later to a lesser degree), even after being warned of legal action in the cease-and-desist letter."

The court also issued a permanent injunction barring Van Dyke from providing tax agent services without proper registration under TASA and ordered him to cover the TPB’s legal costs.