• No account of the sale or the disbursement of the funds has been produced to my office which explains the reason for sale proceeds, including the capital profit of about $15.3 million, being disbursed to those people.
• The capital profit of about $15.3 million has was wholly disbursed and not been account for to date. The company appears to have been left without funds to pay the Capital Gains tax on the profit from the sale or any working capital to pay holding costs on the Wolseley Road Property."
- In relation to the complaints recorded in the report that the statement of account in relation to the Point Piper property did not cover the period in which other properties had been purchased and sold (which I assume refers to the Vaucluse Property, being the only other property purchased and sold by V29), that the provisional liquidators had not been provided with records disclosing who had funded V29's purchase of the Vaucluse property, and that no account of the disbursement of the sale proceeds of the Vaucluse property had been provided to the provisional liquidators, I note that Mr Tonks has given evidence in his affidavit sworn on 25 May 2023 that, prior to being served with the exhibit to Ms Cheng's affidavit affirmed on 23 May 2023, the provisional liquidators had not been provided with a copy of the V29 loan agreement referred to at [23]-[30] above and the V29 loan statement referred to at [31]-[33] above.
- According to Mr Tonks' affidavit sworn on 17 May 2023, V29 is not known to have any current assets other than minor cash at bank and the Point Piper property, and its financial position is "largely unchanged" since the provisional liquidators' report dated 24 February 2023
- The provisional liquidators sent their report dated 24 February 2023 to the ATO on 28 March 2023. On 17 May 2023, the provisional liquidators' solicitors served the interlocutory process and Mr Tonks' affidavit on the ATO in accordance with the orders made by the Court earlier that day. The subject line of the email read: "The matter of Vaucluse 29 Pty Ltd, Bayview 66 Pty Ltd and One Lake Macquarie Pty Ltd". An employee of the ATO replied by email later that day, stating:
"This is to formally confirm with you that the ATO is conducting ongoing tax risk reviews on the entities in the matter listed above.
As part of our work. we will analyse the source of funds injected into the entities which were used to make asset purchases, as well as any financial arrangements entered into by those entities. Once the taxing points are confirmed we may look at raising assessments against the appropriate entities.
Naturally, the proceeds from any disposal of assets that are subject to the capital gains provisions will be considered. At this stage, in line with your findings, we are aware of several property disposals and are likely to be subject to capital gains tax.
We are also wary of cash from company accounts that appear to have, or could be at risk of being, dissipated impacting on the Commissioner's ability to collect on any likely tax assessments.
I wanted to raise these concerns with you even though the ATO has not fully completed its review, as we may potential be party to any litigation proceedings in the recovery of monies."