Company owes ATO $400,000

THE administrator of a Toowoomba land development company will recommend to a meeting of creditors next week that the business be liquidated.

Mareeba 01 Pty Ltd was placed in voluntary administration on November 11, owing the Australian Taxation Office $399,839 and $6071 to the Office of State Revenue, according to administrator Nikhil Khatri of Worrells Solvency and Forensic Accountants.

Australian Securities and Investments Commission records show Fiona Peart as the director of the company from October 1 this year.

Toowoomba businessman Mark Peart was the previously the director of the company.

Mr Khatri said the company was set up primarily to manage one project called Glendridge Estate, which involved the purchase and subdivision of two lots into 61 lots, off Boundary St in Glenvale.

The final lot in Glendridge Estate was sold in October this year.

“The director has advised that the reason for the insolvency of the company was a downturn in Toowoomba property market and excessive debts incurred in relation to the project,” Mr Nikhil said in his report to creditors.

Mr Nikhil’s review of the company’s finances found it had “insufficient current assets to meeting its current debts” as far back as June 30, 2015, and it appeared to have “relied on loans from related entities and financiers to continue operating”.

A second meeting of creditors will be held at 10.30am on December 5 in Brisbane, where Mr Nikhil will recommend the company be placed in liquidation.

The ATO has filed a separate application to wind up the company in the Federal Court on December 6.