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Company director faces 13 charges over tax debt

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Company director faces 13 charges over tax debt

Debt

The director of a now liquidated company that owed the tax office more than $230,000 will face court on 13 charges relating to alleged phoenix activity.

ASIC has accused Queensland man Allan Ronald Saunders, who was the sole director of Metropolitan Design, of redirecting a number of debtor payments owed to the business into his personal bank account.

These transactions allegedly took place in the five months prior to the business collapsing in September 2015.

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ASIC said these transactions amounted to phoenix activity, as they had the effect of denying the ATO – the company’s sole creditor – funds to the tune of $235,626.

Mr Saunders reportedly did not enter a plea when he faced Sandgate Magistrates Court with 13 counts of breaching the Corporations Act. The case has been adjourned to 19 October.

Phoenix activity is a major target of the federal government and business regulators at present.

ASIC commissioner John Price recently labelled the issue “a serious problem in Australia”, and pointed to a PwC report suggesting it costs the national economy “between $2.85 billion and $5.13 billion” – the bulk of which is shouldered by businesses.

It is also the primary reason for the government committing to introduce the new Director Identification Numbers (DINs).

 

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Adam Zuchetti

Adam Zuchetti

Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016. 

The two-time Publish Awards finalist has an extensive journalistic career across business, property and finance, including a four-year stint in the UK. Email Adam at This email address is being protected from spambots. You need JavaScript enabled to view it.

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