Creative accounting gets director banned

Creative accounting gets director banned

A business leader has been struck off after it was found he poured company tax monies as a source of cash flow to continue trading.

The liquidators of three companies led by Steven Andrew Soong – Kalnosa Pty Ltd, Lafari Pty Ltd and Linsari Pty Ltd – identified tax liabilities equating to just over $1.2 million.

Information was passed between the liquidators and ASIC’s Phoenix Taskforce, which comprises a total of 20 agencies across federal, state and territory levels.

The taskforce found Mr Soong had used tax debts from labour hire costs to continue trading the three companies instead of making payments to the Tax Office.

“Failing to remit company tax has detrimental consequences and adversely affects [Australia’s] revenue base. It also gives directors an unfair advantage when competing for work with businesses that play by the rules,” said ASIC Commissioner John Price.

As a result of the investigation, Mr Soong has been banned from managing companies for three-and-a-half years.

To check businesses suspected of dealing with phoenix activity, you can download the ASIC Business Checks app and find out more about the company’s history, its operators and whether it is properly registered.

ASIC’s announcement coincided with news that the government is introducing a range of measures to crack down on phoenix companies, which create an estimate $3.2 billion in losses annually.

 

Creative accounting gets director banned
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