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ASIC has moved to disqualify a director for five years after he was found to have engaged in illegal phoenix activity, owing over $30 million to the Tax Office.
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$30m ATO debt, illegal phoenix activity sees director disqualified
18 December 2019
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8 minute read
ASIC has disqualified Timothy Elgan Marsh, of Epping, NSW, from managing companies for the maximum period of five years for his involvement in two failed companies, SME Fleet Pty Ltd ACN 605 623 523 (SME Fleet) and New Cars Plus Pty Ltd ACN 148 039 016 (New Cars Plus).
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SME Fleet and New Cars Plus had both collapsed, owing creditors a total of $30,745,680, which included $30,656,648 that was owed to the ATO.
The corporate regulator found that Mr Marsh improperly used his position as a director by engaging in illegal phoenix activity when he transferred the business of New Cars Plus to another company of which he was the sole director.
He was also found to have demonstrated poor compliance by failing to lodge business activity statements and income tax returns, and failing to keep adequate written financial records.
Mr Marsh also failed to ensure that his companies paid prescribed fees to ASIC while also failing to assist a liquidator.
Mr Marsh will now be disqualified from 1 December 2019, extending to 30 November 2024.
In making the decision to disqualify Mr Marsh, ASIC relied on reports lodged by liquidators of SME Fleet and New Cars Plus.
The liquidators of SME Fleet Pty Ltd and New Cars Plus Pty Ltd received funding from the Assetless Administration Fund to prepare supplementary reports that ASIC used in making its decision to disqualify Mr Marsh.
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