Oasis Credits Pty Ltd trading as Holdfast Finance Corporation - s.87B undertaking

In September 2000, the Commission received a complaint regarding the charging of GST on a lease agreement with Oasis Credits Pty Ltd trading as Holdfast Finance Corporation.The Commission, as part of its investigations, requested advice from the Australian Taxation Office regarding the review opportunities in the lease agreement for the applicability of GST.

Advice received from the Australian Taxation Office indicated that the agreement should be characterised as a hire purchase agreement and therefore GST is only payable on the physical supply of the goods.

The Commission was concerned that the conduct of Oasis Credits Pty Ltd in representing to customers that GST was payable on their lease agreements was misleading or deceptive in contravention of the Act.

Oasis Credits Pty Ltd has given undertakings to the Commission that it will:

• notify its customers of its conduct by writing and offer its customers a reimbursement of the GST incorrectly collected via crediting the amount against future payments, seek a cash or cheque refund or leave their account in credit until finalisation of the agreement;
• obtain a written report confirming that the above has been completed and provide it to the Commission within one month of the Commission accepting the undertakings;
• take all reasonable steps to ensure staff and agents are aware of the provisions of the Trade Practices Act 1974.