CANBERRA: The Australian Taxation Office (ATO) has been ordered to refund more than $1 million it took from failed South Australian company Penrice, after being sued by the company’s liquidators, the ABC can reveal. The soda products maker collapsed in 2014 with debts of up to $200 million, leaving 100 staff out of work. In the lead up to its demise, Penrice paid the ATO more than $1.2 million. Liquidators McGrath Nicol sued the ATO and the Federal Court has ordered the money be repaid. Court documents show McGrath Nicol claimed the payments between 2013 and 2014 should not have been made to the ATO because Penrice was insolvent and unable to pay its debts. It said the tax office received a so-called “unfair preference” ahead of other creditors. “The payments resulted in the ATO receiving … more than the ATO would receive if the payments were set aside and the ATO was to prove for the debt in the winding up of the company,” the liquidator’s court submission said.
“The ATO has failed, refused or neglected to pay the plaintiff the amount demanded.” Court documents showed before its collapse, Penrice had $97.5 million in loans provided by NAB and Westpac and no further funding available. Between August 2013 and April 2014 at least 95 payment plans were entered into with 70 separate suppliers, of which Penrice failed to honour the terms of 85.
