THE $100 million collapse of the Pollock group of companies may have been triggered by tax authorities, seeking to recover unpaid GST owed by one of the trading entities.
The Australian Taxation Office, reportedly owed about $16 million by companies within the group, is understood to have sought to garnishee customer payments to one company, possibly Goldfields Contractors Pty Ltd, earlier this year.
It is believed that when National Australia Bank got wind of the move – where the tax office commandeers commercial payments to a company with an unpaid tax liability – it moved to appoint receivers to several entities within the earthmoving and contracting empire of former truck drivers Kevin and Peter Pollock.
Since March 27, the bank has appointed Michael Ryan and Ian Francis of Taylor Woodings as receivers and managers to at least 15 companies, and administrator Brian McMaster of Ernst & Young has subsequently been appointed to at least five of those companies.
Garnisheeing is most commonly seen in Family Court matters where child support payments may be taken out of a parent’s wages by the employer and paid directly to the agency.
The concept of garnisheeing payments has a long history with the tax office but its use in attempting to recover unpaid GST may well further signal that the ATO’s long-running hands-off approach to this tax is over after almost three years in operation.
Mr McMaster is undertaking an investigation to assess how funds flowed through the group and has been granted leave by the courts to delay his report to creditors until July.
He has been appointed administrator of Pasadena Holdings Pty Ltd, Netglory Pty Ltd, Bricom Pty Ltd, Whitewood Pty Ltd and Kalgoorlie Contractors Pty Ltd.
NAB is understood to have the biggest exposure to the group, possibly as much as half of the total estimated debts of $100 million owed to the group of creditors, which also reportedly includes Police & Nurses Credit Society and more than 200 employees.
Below are the companies linked to the group to which NAB appointed receivers and managers during the past six weeks.
PRZ Pty Ltd, formerly Peat Resources of Australia Pty Ltd, ACN 008 798 025.
YMMD Pty Ltd, formerly MM Developments Pty Ltd, formerly Soils Ain’t Soils Pty Ltd, ACN 064 032 631.
YKAS Pty Ltd, formerly Kwik & Swift Enterprises Pty Ltd, ACN 009 470 124.
ZGWH Pty Ltd, formerly Garden World Holdings Pty Ltd, ACN 070 673 924.
Goldfields Contractors WA Pty Ltd, ACN 086 368 578.
SGZ Pty Ltd, formerly Soiland Garden Suppliers Pty Ltd, ACN 063 883 732.
ZATA Pty Ltd, formerly All Terrain Aust Pty Ltd, ACN 075 227 566.
ZIWT Pty Ltd, formerly Interwest Investments Pty Ltd, ACN 075 902 895.
ZPNS Pty Ltd, formerly Pollock Nominees Pty Ltd, ACN 008 842 911.
Kalgoorlie Contractors Pty Ltd, ACN 009 460 931.
Pasadena Holdings Pty Ltd, ACN 058 609 635.
Whitewood Pty Ltd, ACN 093 975 501.
Netglory Pty Ltd, ACN 086 196 812.
Bricom Pty Ltd, ACN 070 221 064.
ZWG Pty Ltd, formerly Westgroup Pty Ltd, ACN 067 744 254.
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