Hall & Wilcox accuses taxation service of multiple breaches

The firm retained Pitcher Partners between 2017 and 2023 to provide accounting and taxation services, including ensuring income tax returns met Australian Taxation Office (ATO) requirements.

In March 2023, Pitcher Partners advised Hall & Wilcox of “potential late payment issues” in relation to the superannuation guarantees in the 2022 income year, according to the firm’s writ.

Following a review, the firm said it discovered certain superannuation guarantee payments made to its entities’ employees between January 2017 and December 2022 were late.

Hall & Wilcox alleged Pitcher Partners “took no steps to inform the plaintiffs of the late payment issue in prior income years”.

“Specifically, the defendant failed to advise the plaintiffs on the late payment issue during the defendant’s engagement to provide taxation services to the plaintiffs in the years from 2017 prior to March 2023 and provided confirmation … to the plaintiffs that no such issue existed,” the firm alleged in court documents.

When preparing income tax returns between 2017 and 2023, Pitcher Partners allegedly failed to advise that the payments were late, contrary to its duty to ensure all items reported met ATO requirements.

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Further, Hall & Wilcox alleged the failure occurred during a time when Pitcher Partners advised that some expenses in its tax returns could not be claimed, “and thereby reduce the net income of the relevant entity where those payments were paid late”.

In addition to an alleged breach of its contractual obligations, Hall & Wilcox accused Pitcher Partners of breaches of duty of care and its obligations under the Tax Agent Services Act 2009 and the Competition and Consumer Act 2010.

The firm has sought damages, costs, and interests.

In a statement, Pitcher Partners said: “As this is a legal matter, Pitcher Partners has no comment to make at this time.”