I am in the process of setting up a trust and recently I had a meeting with an accountant to see if the accountant is conversant with taxation laws relating to trusts and vendor financing strategies and would be able to provide the service to me once the trust is set up (by my lawyer).
At any point, I was not told that there would be a fee for the initial meeting with the accountant. During the meeting I especially asked about the charges and I was told that the only fee is for preparation of tax returns, if/when I do business with this firm.
However, I received an invoice recently and they insist that I pay this amount (over $200), which is said to be for one and half hour investment advice, which I did not receive or ask for.
When I raised this issue with the accountant, I was told that accountant’s recollection was that I was told about the fee for the initial meeting. Once I explained that this was not the case, then the accountant told me that he also provided investment advice. In fact he knew nothing about the vendor financing strategies and talked about negative gearing, which I did not asked about.
Now I am planning to write a letter to his supervisor about their staff not being up front about fees and charges.
Since I did not ask for any finacial advice, and I was not told that there would be a fee for the initial meeting, I do not want to pay. Any thoughts as to what I should do in this sort of situations? Thanks.
1. Not all accountants are licensed to give investment advice (they need an Australian Financial Services “AFS” Licence). If they don’t have one then how can they charge you for something that they are not entitled to give!
2. Accountants normally get you to sign an engagement letter (which, amongst other things, sets out fees and charges). If you haven’t signed one then they are not in a good position to make you pay.
If they still insist then tell them that you will refer the matter to the Australian Certified Practicing Accountants (www.cpaaustralia.com.au) or Australian Institute of Chartered Accounts (www.icaa.org.au) (whichever they are a member of – the way they are behaving it sound like they are CPA’s [] []). That should shut them up.
Stuart is correct in that unless an accountant is licensed, he cannot give financial advice. However, it is unfair to assume that the accountant concerned is a CPA. My experience indicates the worst type are those accountants who do not belong to either the Institute of Chartered Accountants or CPA Australia.