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NSW My Tax Return Accountant is Suing Me - What to Do?

Discussion in 'Australian Consumer Law Forum' started by Mark101101, 19 September 2015.

  1. Mark101101

    Mark101101 Active Member

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    I live in NSW / Australia. I have been dealing with my accountant for the last 15 years . I used to pay him between 300 to 500 Dollars per year for my tax return as a sole trader .

    For personal reasons, I did not lodge my tax return for several years then when I lodged them, he sent me a tax invoice where he inflated his fee 10 folds then he is suing me to pay it .

    What should I do ?
     
  2. Paul Cott

    Paul Cott Well-Known Member

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    Mark,

    If you dispute the charges which may be difficult, defend it or offer a lesser amount and or try to negotiate a resolution. Or maybe enter a payment plan. It is possible the charges are legitimate though. It is s bit hard to say from the facts.
     
  3. Tim W

    Tim W Lawyer

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    If he did several years worth of old and late tax returns, then he's probably done much more work for you than usual.
    The first thing you do is ask for an itemised bill.
     
  4. Mark101101

    Mark101101 Active Member

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    I asked for an itemized bill to find strange items like 3 thousands dollars to read my e-mail which contained the information he asked me about to lodge my tax return although he was the one who asked me to send him the documents by e-mail not in paper form . another 3 thousands dollars to decide the strategy for lodging my sole trader tax return . one thousand two hundreds dollar to call a lady from the tax the office and double the fee that he used to charge me for each year of tax returns , so at the end total bill is ten folds the usual fee he used to charge me for the previous years as I am his client for the past 15 years .
    He is suing me for his fee because the fee of the accountants is not regulated in Australia.
     
  5. Tim W

    Tim W Lawyer

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    No, he is suing you because you have not paid him.

    You may have signed something called a Letter of Engagement or similar. Have a look at that and see what it says about disputes involving fees.

    You may find some pointers the various Professional Bodies for Accountants.

    Beyond what I have said above, I am not myself in a position to speculate on the reasonableness or otherwise of the amounts involved.
    Any comparison between what lawyers charge and what accountants charge is meaningless.
     
  6. Mark101101

    Mark101101 Active Member

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    Hi Tim:

    I am his client for the last 15 years . I never signed any Letter of Engagement or similar thing with him .
    I paid him so far 13 thousands for the work he had done which is 10 thousands more than I should pay him based on his fees in the previous years . I paid that hoping that money would cover the future work as I was not planning to leave him .
    He is suing me because he is saying that the money I paid is not enough.
     
  7. Mark101101

    Mark101101 Active Member

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    For personal reasons, I did not lodge my tax return for several years then when I lodged them, My account sent me a tax invoice where he inflated his fee 10 folds then he is suing me to pay it .

    I was his client for the last 15 years . I never signed any Letter of Engagement or similar thing with him .

    I asked for an itemized tax invoice to find strange items like 3 thousands dollars to read my e-mail which contained the information he asked me about to lodge my tax return although he was the one who asked me to send him the documents by e-mail not in paper form , another 3 thousands dollars to decide the strategy for lodging my sole trader tax return .

    One thousand two hundreds dollar to call a lady from the tax the office and double the fee that he used to charge me for each year of tax returns , so at the end total bill is ten folds the usual fee he used to charge me for the previous years as I am his client for the past 15 years .

    He told me that the fee of the accountants is not regulated in Australia.

    I paid him so far 13 thousands for the work he had done which is 10 thousands more than I should pay him based on his fees in the previous years . I paid that hoping that money would cover the future work as I was not planning to leave him .

    He is suing me now because he is saying that the money I paid is not enough.


    What should I do ?
     
  8. Mark101101

    Mark101101 Active Member

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    So no one has any solution for my problem?
     

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