Two builders collapse with $500k tax debt
TWO Queensland-based construction players were wound up in the Federal Court because they collectively owed the taxman half a million dollars.
The ATO brought an end to A-1 Coastal Constructions (Qld) Pty Ltd and developer Hopeland Homes Pty Ltd in March.
Federal Court documents showed that as of November 8, 2018, Hopeland Homes owed $256,105 to the ATO for unpaid BAS.
A-One Coastal Constructions were placed into liquidation with an outstanding tax bill of $244.258.53 as of November 22, 2018.
The ATO's attempts to contact the director of Hopeland Homes via registered post, to correct the debt, were unsuccessful.
Cor Cordis have been appointed administrators of Hopeland Homes and will hold a meeting of creditors tomorrow.
Hopeland Homes described itself as a "brand-new boutique" businesses that had partnered with The Vantage Building Group on a multistorey unit block at Mango Hill on its website.
However, The Vantage Building Group operations director Glenn Carmichael vehemently denied any partnership and said they were also owed money by Hopeland Homes.
"The relationship between Vantage and Hopeland Homes was contractor and principal, there has never been a partnership or joint venture arrangement between Vantage and Hopeland Homes," Mr Carmichael said in a statement.
"Vantage had not worked with Hopeland Homes before this project and it has not worked with it since.
"Vantage is owed money by Hopeland Homes but it has taken steps to secure its position.
"Vantage has paid all of its subcontractors and suppliers associated with this project."
According to ASIC documents, Michael Karras became director of Hopeland Homes on March 7 which was about two weeks after the ATO started Federal Court proceedings to wind the company up.
Mr Karras took over from Michael Tsingolis who was director from July 21, 2016 until March 7, 2019.
Mr Karras was contacted for comment through Hopeland Home's office number.
Unlike Hopeland Homes which is not under the jurisdiction the building industry watchdog, QBCC stripped A-1 Coastal Constructions director Adam John Currie of his builder's licence.
The QBCC first suspended Mr Currie's licence in February before cancelling it in March.
Besides owing the taxman, A-1 Coastal Constructions allegedly owes a Queensland carpenter several thousands of dollars.
Joshua Johnstone, who runs J.J Quality Homes, said he was initially owed $25,000 and had been drip fed money over 12 months.
"I started working for him last April and he paid off a bit here and there and it got down to about seven grand, so he had a crack it," Mr Johnstone told The Courier-Mail.
The QBCC said it cancelled the licence of A-One Coastal Constructions (Qld) Pty Ltd on 11 March, after it failed to repay debts related to a monies-owed complaint from another licensee for the value of $12,274.95.
"The QBCC is looking into both A-One Coastal Constructions (Qld) Pty Ltd and Hopeland Homes. We have no records of any complaints received against Hopeland Homes," the QBCC spokesman said.
"When a QBCC licensee is wound up, the QBCC automatically begins the legal process which would see the directors excluded from holding a contracting licence in the industry for three years."