TPB Pursues Five Ongoing PwC Probes Following Conviction of Unregistered Tax Preparer Jessa Dabalos

Despite the conviction of Perth-based tax preparer Jessa Dabalos, the Tax Practitioners’ Board (TPB) has confirmed that it is continuing to investigate five unresolved matters linked to the PwC tax scandal. Dabalos, who operated under multiple aliases including Jess Van Stroe and Jessa Loyola, was sentenced to 12 months in prison by Australia’s Federal Court earlier this month for providing tax services while unregistered.

The TPB stated that Dabalos had prepared hundreds of tax returns and offered advice to clients across Western Australia without holding the necessary registration required under Australian law. Individuals who charge for tax services or advice must be registered with the TPB, in accordance with the Tax Agent Services Act 2009.

This was not the first time Dabalos had been penalised for acting outside the law. “In previous decisions, the court found 531 breaches of the Tax Agent Services Act 2009, imposed a A$230,000 (US$147,000) penalty and a permanent injunction to prevent further misconduct,” the TPB noted in its media release. The Board confirmed that she had continued her activities in defiance of the court’s orders, committing an additional 365 violations that constituted contempt of court. The Federal Court responded by imposing a 12-month prison sentence.

TPB chairman Peter de Cure used the conviction to reiterate the importance of registration for tax practitioners in Australia. “Misconduct by unregistered preparers can involve the exploitation of vulnerable clients. Some unregistered preparers prey on clients who are unfamiliar with the tax system, lodge false returns with the Australian Taxation Office (ATO), and expose clients to significant taxes, penalties and financial stress,” de Cure said. He further stressed the Board’s commitment to enforcement, saying, “The TPB’s compliance strategy will identify and address unregistered preparer misconduct to protect the community and support the integrity of the tax profession and the tax system. Unregistered preparers could face injunctions, significant penalties and jail if acting criminally or in contempt.”

While Dabalos’ case has reached its conclusion, the TPB remains actively engaged in five ongoing investigations connected to the wider PwC scandal. The status of these cases remains unclear, and there has been no recent update due to the disruption caused by the announcement of the upcoming Federal Election in May. As a result, neither the TPB nor the ATO appeared before Senate Estimates to provide their usual updates, which would have included developments on the PwC matters.

The PwC scandal originally centred on former partner Peter Collins, who lost his tax agent registration following the exposure of misconduct, and led to regulatory orders requiring the firm to improve its internal training and conflict-of-interest oversight. In October last year, the TPB disclosed that it had completed four of nine PwC-related investigations and determined that no further action was necessary in those particular cases.

By fLEXI tEAM