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A Sydney-based director has been disqualified from managing corporations for a five-year period over several tax obligation failures.
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Tax obligation failures see Sydney director disqualified for 5 years
06 January 2022
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9 minute read
ASIC has confirmed Goongong local David Ross Hall of Googong, NSW has received the ban until 27 October 2026 for his involvement in six failed companies he was a director of between 1996 and 2019. The companies, which operated in the construction industry, have been listed as In Precast Pty Limited, Prestell Hire Pty Limited, Canberra Precast Pty Limited, Canberra Cranes Pty Limited, Regemade Cranes and Rigging Pty Ltd, and C.T. Precast & Tilt Pty Limited.
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In disqualifying Mr Hall from managing companies for five years, ASIC found that Mr Hall breached his duty to prevent In Precast from trading while insolvent and his duty to act with due care and diligence by allowing In Precast to pay the tax debt of a related entity and to allow loans made to third parties to accumulate.
ASIC also found Mr Hall breached his duty to act with due care and diligence by failing to ensure that Prestell Hire complied with its statutory obligations to lodge tax documents; and record-keeping obligations in respect of In Precast and Prestell Hire.
“At the time of ASIC’s decision, the six companies owed unsecured creditors $11,257,845 including $4,389,496 owed to the ATO,” the corporate watchdog said.
“In deciding to disqualify Mr Hall, ASIC relied on supplementary reports lodged by the liquidator of In Precast, Steven Gladman of Hall Chadwick and the liquidator of Prestell Hire, Frank Lopilato of RSM Australia. ASIC assisted the liquidator of In Precast to prepare a supplementary report by providing funding from the Assetless Administration Fund.”
Further, ASIC confirmed it has also disqualified Michelle Denise Hall, who was Mr Hall’s co-director of In Precast Pty Limited and Prestell Hire Pty Limited.
During her time as co-director, ASIC found Ms Hall breached her duty to prevent In Precast from trading while insolvent and duty to act with due care and diligence by allowing In Precast to pay the tax debt of a related entity and to allow loans made to third parties to accumulate. It also found she breached her duty to act with due care and diligence by failing to ensure that Prestell Hire complied with its statutory obligations to lodge tax documents; and record-keeping obligations in respect of In Precast and Prestell Hire.
“At the time of ASIC’s decision, the two companies owed unsecured creditors $3,925,302 including $2,004,555 owed to the ATO,” ASIC said, noting that this decision also relied on supplementary reports lodged by the liquidator of In Precast, Steven Gladman of Hall Chadwick and the liquidator of Prestell Hire, Frank Lopilato of RSM Australia.
Ms Hall is disqualified from managing corporations until 27 April 2024.
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