The Australian Competition and Consumer Commission has settled its Federal Court proceedings against Mr Tony Amodio, the principal of Accounting for GST, a registered GST Startup Assistance Provider, by court-enforceable undertakings, ACCC Chairman, Professor Allan Fels, said today.
"The ACCC took legal action following numerous complaints from small businesses about the marketing practices of representatives of Accounting for GST. The ACCC received complaints from small business consumers that representatives of Accounting for GST had claimed that it was affiliated with, or part of the Australian Taxation Office or GST Start-up Assistance Office; that it offered services such as registration for Australian Business Numbers and GST seminars for free; and that all businesses are legally required to apply for an ABN and register for the GST.
"The ACCC considered that those representations were misleading in several respects. In this settlement, Accounting for GST has admitted that consumers may have been misled as a result of this conduct.
"Under the settlement Mr Amodio and persons working on his behalf have undertaken not to make representations in the future that:
- Accounting for GST has any sponsorship, approval of affiliation with the GST Startup; Assistance Office, or the ATO beyond that it is a registered supplier under the GST legislation;
- Accounting for GST’s registration services and workshops are provided free of charge unless this is correct;
- an ABN is required for the purposes of the GST legislation for anything other than creating an entitlement to claim input tax credits within the terms of the GST legislation; and
- persons or entities who make use of Accounting for GST’s services are required to attend any seminars in relation to Registration Services
Mr Amodio has also undertaken to:
- send letters by 7 July 2000 to all customers who have paid for registration services or places at GST Workshops to offer them a full refund where they have been mislead by statements made by representatives of Accounting for GST. Accounting for GST customers have until 31 August 2000 to respond to these letters;
- place corrective advertisements at his own expense in local newspapers in the areas where Accounting for GST’s marketing activities were concentrated, namely Newcastle, Wollongong, Gold Coast and northern NSW; and
- implement a trade practices compliance program.
A contracted representative of the company, Mr Matthew Old, has also given undertakings to not to make certain representations in the future and to participate in the compliance program.
"The ACCC notes that this settlement will allow small businesses who may have been misled by representations by Accounting for GST to recover the benefit of their GST Startup Assistance Certificates as soon as possible. In this regard business consumers should note the advice from the GST Startup Office on 15 June 2000 that eligible certificate holders will now have until 31 October 2000 to redeem their $200 certificate for GST-related plant and equipment.
"The ACCC's actions in the matter show that it will move quickly against any organisation which it believes may mislead small business about the introduction of the GST. It is crucial at this time that small businesses receive the benefit of accurate and timely advice from all professional advisers, particularly registered GST Startup Assistance providers.
"Furthermore, the ACCC is committed to ensuring that all small businesses get the full benefit from the GST Startup Certificates provided by the Commonwealth Government to help them in the transition to the New Tax System".