Two internet companies offering tax return services have had liquidators appointed by the Australian Securities and Investments Commission after concerns were raised clients were not receiving their refunds.
The corporate watchdog said in a statement it has received orders in the Federal Court to apply provisional liquidators to Tax Returns Australia Dot Com and Online Returns, whose owners may have even used the money gained to purchase a holiday home for themselves.
Ross Blakeley and Quentin Olde of Taylor Woodings have been appointed provisional liquidators of both companies.
The appointment follows an investigation conducted in January this year, after ASIC was told clients of both sites had not received their tax refunds, or stimulus payments they were meant to receive. Both companies operated websites where users could submit their returns to the ATO.
“Justice Dodds-Streeton ruled that there was sufficient evidence to suggest that both companies had failed to pay clients substantial amounts of money received as tax refunds on their behalf from the ATO,” ASIC said in a statement.
ASIC also said the Judge found the companies may have used the tax refunds to purchase a holiday home in Port Douglas.
ASIC’s investigation is ongoing.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
