Tree lopper cuts out with $460K debt to ATO and workers
THE Australian Taxation Office is expected to be the largest creditor owed some $460,000 by a Townsville tree lopping company which has been placed into liquidation.
The public notices of the Australian Securities and Investments Corporation say a general meeting of the members of Sun City Trees and Mulch Pty Ltd was held on January 29 at which it was resolved to voluntarily wind up the company.
It was also resolved Brendan Nixon of SM Solvency Accountants be appointed liquidator.
According to company records, Lionel Bernard Josey is the sole director and member of Sun City Trees and Mulch.
Mr Nixon told the Townsville Bulletin he was in the process of notifying parties like the Australian Taxation Office and entities holding security interests in the company to ascertain what information or claims they might have.
He said the company's director had told him the estimated liabilities to the ATO were about $460,000, part of which included unpaid superannuation which would become claimable by the tax office on behalf of employees.
"It's looking like the ATO will be the largest creditor," Mr Nixon said.
He said the director had told him he had ceased to trade the company in November last year because of a declined availability of work due to the COVID-19 pandemic and due to an alleged embezzlement of funds.
Mr Nixon said the director had also told him the company had sold plant and equipment and was effectively without assets.
"There are a few things I will have to look at (that have) the potential to bring money back in for creditors," Mr Nixon said.
This included identifying whether there were any potential recoveries that could be made for the benefit of creditors.
When contacted by the Bulletin Mr Josey rejected suggestions superannuation was owed to employees but declined to comment further.
Company records show he is a member of two other companies, Sun City Trees Nth Qld Pty Ltd, which has been in liquidation since 2015, and Sun City Trees and Gardening Supplies Pty Ltd which continues to trade.
The website of Sun City Trees and Mulch Pty Ltd says the company offers residential, commercial and real estate tree lopping, tree removal and stump grinding and also aims to provide landscaping needs from land clearing and mulching, to Bobcat and cherry picker hire.
Originally published as Tree lopper cuts out with $460K debt to ATO, workers