Our Accountants want payment for a years worth of work they…

Our Old Accountant is holding our Company secretarial File including Company binder to ransom until l we fully pay for a years service,(the 2012-2013 account) that he has done nothing for and will never do anything for.

The new Accountant said it is illegal to hold the Company Binder as it is ours and must be released.

I have put a formal complaint into the Tax Practitioners Board.

Unable to get our end of year figures 2011-2012 released to us, in October 2012 last year and only receiving emails requesting payment in September without an amount on it, I paid 3 months worth of next years payment using the figures from the previous year, just to get our end of figures released, which I thought I needed desperately for a Bank Guarantee, only to be told in January 2013, because I paid 3 months worth of an annual account, I now owed the rest of the years account because the annual contract we signed in 2010 said any money owed will come due on termination of account, even though he never once asked for the July-September information for the BAS for which we have paid for, and has provided no service at all for the next years account, and we never signed the annual contract and send back at all for this period.

He says he will commence executing CRAA default, and lodge caveats pursuant to the charge clause in the engagement letter. The original engagement letter that is himself is in breach of for not providing the BAS figures that payment was provided for and other services not provided as per contract, for an annual service that was to be discussed before we sign for, for which neither happened.

He says he can hold a Lien over our account, can he do this when there is no money owed for any work provided;if anything,I am actually owed work for the three months paid for.

Twice BAS figures were incorrect because he forgot to apply the PAYG % installment, I even had to hire a Quick books expert to help with their incorrect accounting journal I had to apply because if they had to help me apply it, it would cost more, I asked for their help and they didn't help in any way, leading me to have to hire a Quick Books expert only to find their Journal figures didn't add up!

I had to get another Accountant because I could not trust the information given, they asked twice for figures straight from the computer without looking over the account, which I questioned and was told:

"If we have to look over your account it will cost more because this is not included in your $5,015.97 annual package!" How could looking quickly over your account and codes not be included? Isn't this what an Accountant is for, to make sure your figures are accurate?

The the end of year figures I received were ridiculous and our new Accountant pointed out there was no way these figures could be correct in anyway, if they had been sent to ATO, it would have caused a unnecessary Company Audit! The reply was " Sorry, we did your figures on a cash basis", then provided new figures, thousands of dollars different.

They now want $5,016.01, plus interest, plus costs!

I realise they will have to take me to court to enforce payment, but in the mean time, can my Company financials be affected? Is there any way to stop this? Where do I go from here?

If I fill out the Form 2, Victorian Civil and Administrative Tribunal Rules 2008, application for order, does this stop things until it goes to court? What order do I ask for? What act? Am I on the right path here?Reason for application?

Kind regards,

Rudi Bence