Dr NELSON —Mr Speaker, my question is addressed to the Minister for Financial Services and Regulation. Can the minister inform the House of any recent prosecutions following the government's monitoring of GST profiteering?

Mr HOCKEY (Financial Services and Regulation) —I would like to thank the member for Bradfield for his interest in this important matter. Mr Speaker, on 5 July this year a consumer rang the ACCC's GST hotline, which is 1300 302 502, and complained that a company called Australian Taxation Information Services, or ATIS, was distributing forms, which were very similar to Australian Taxation Office forms, to small businesses asking them to pay $175 for one year's registration or $295 for two years registration in order for them to secure an Australian business number. These forms were sent to 20,000 small businesses, including some in the electorate of the member for Bradfield. Businesses were misled into believing that ATIS was associated with the Australian Taxation Office and that these payments were necessary to register under the GST.

On 16 July, the ACCC successfully prosecuted ATIS through the courts. They were fined $5,000 and the defendant, Michael Phillip Ivanoff, was ordered to write to all 20,000 businesses to inform them that ATIS had no association with the Australian Taxation Office and that the money would be returned. The defendant, Mr Ivanoff, failed to do this. Subsequently, he was prosecuted and has been sent to jail for three months. This is the first significant prosecution involving a GST scam. This reinforces the fact that people trying to take advantage of consumers during the conversion to the new taxation system will be severely fined and, if necessary, sent to jail. All Australian consumers will be watching carefully as Australian business helps to implement the new taxation system, and all Australian consumers will continue to police what is a far better taxation system than the hotchpotch provided by the Australian Labor Party.