Effect of Insolvency on ATO’s Garnishee Power

With the recent spotlight on the alleged overzealous use of debt recovery tactics such as s260-5 Garnishee Notices by the Australian Taxation Office (“ATO”) to recover taxation liabilities, it is worthwhile to examine the legislation surrounding and impact of these notices on individuals, businesses and the effect of an insolvency appointment. The Legislation Section 260-5 … Continued

Read More

Assetless Administration Fund

It is noted that when a company goes into liquidation with few or no assets, a liquidator often performs only a perfunctory investigation, which may result in a failed company not being fully investigated to a deeper level that a creditor or stakeholder wishes. This can happen when a failed company has insufficient realisable assets … Continued

Read More

ELIGIBILITY OF CLAIMING DEDUCTIONS FOR PAYG

Small business owners should be aware of changes to compliance obligations for claiming deductions for PAYG. From 1 July 2019, businesses will be prevented from claiming deductions for payments to employees and certain contractors if they fail to comply. Payments include the following: Salaries; Wages; Commissions; Bonuses or Allowances to an Employee; Payments under a … Continued

Read More

TIME TO TREAD WEARILY

The first months of 2019 have been somewhat of a roller coaster for business with issues coming left, right and centre and no real clear and singular path forward. Certainly, we have been operating now for some time in a world of rapid and escalating change, but the issues now are differing. Similarly some of … Continued

Read More

FINDING A REAL BOARD!

FINDING A REAL BOARD! It was great to read in the Financial Review this week that Ben Gray, co-founder of private equity firm BGH, is seeking to have a quota of 50 percent of all Board members with real experience in the leadership and operation of businesses. He further advocates that, most preferably, this experience … Continued

Read More

DOES THE SYSTEM REALLY WORK?

Yesterday the Supreme Court pass down a Judgement on an ASIC application to have a judicial enquiry into the behaviour of two liquidators.  The Judgement is scathing, not of the liquidators but of the applicant ASIC. The first and obvious point was the duration that the process took and whilst the Judge apologised for his … Continued

Read More

ASIC Corporate Insolvency Update Issue 10

In December 2018, ASIC posted its Corporate Insolvency update on their website about the latest regulatory developments and issues affecting corporate insolvency markets. Here is a summary of key points: Lodgement of Declarations of Independence and Relevant Relationships and Declarations of Indemnities (“DIRRI”) with ASIC. ASIC provides the following key reminders when registered liquidators lodge … Continued

Read More

ASIC staff to attend Creditors Meetings

The Australian Securities & Investments Commission (“ASIC”) is entitled to attend any meeting of creditors or contributories held under Corporations Act (Section 75-30) of Schedule 2-Insolvency Practice Schedule. ASIC has informed the registered liquidators about starting their Pilot Program involving their staff to attend creditor’s meetings in the first half of 2019. The Pilot Program … Continued

Read More

When a Court appoints a Provisional Liquidator

The appointment of a Provisional Liquidator would have a major effect into the affairs of a company and will only be done in circumstances where there are no other remedies available to maintain the current situation pending a final determination of a winding up application. Unlike the usual Liquidator, a Provisional Liquidator does not evaluate … Continued

Read More