The Federal Court, Brisbane has found that the Institute of Taxation Research and Wayne Levick have engaged in misleading and deceptive conduct in breach of the Trade Practices Act 1974 in the provision of taxation advice.
For several years, both ITR and Levick instituted case after case in the Federal and High Courts in an attempt to argue that the various Income Tax Acts, including the recent Goods and Services Tax legislation were illegal.
In more than 35 cases, the courts have rejected the arguments. Justice Hill of the Federal Court of Australia described them as "nonsense" (Levick v Deputy Commissioner of Taxation [2000] FCA 674).
ITR and Levick had commenced these actions on behalf of consumers and small businesses who had been led to believe that they could avoid paying tax and could successfully defend legal action against them by the Australian Taxation Office. At no time have ITR or Levick explained to consumers that none of their arguments had been successful.
Until the Australian Competition and Consumer Commission instituted proceedings in December 2000, both ITR and Levick maintained web sites devoted to their arguments that changes in Australia's international sovereignty since 1901 have meant that thousands of laws passed by parliaments are illegal.
The ACCC instituted legal proceedings against ITR and Levick following an investigation requested by the Australian Taxation Office.
The ACCC was concerned that consumers who approached ITR and/or Levick were not aware of all the facts. In not informing potential clients that the courts have rejected all of their arguments, ITR and Levick were peddling false hopes.
Neither ITR nor Levick attended Court to defend themselves against the ACCC's action. Accordingly, after examining the ACCC's evidence Justice Cooper awarded injunctions against both ITR and Levick preventing them from continuing to make the representations. Justice Cooper also ordered that ITR write to those clients it has obtained since 10 March 2000 advising them of the ACCC's action and the orders made.