Ashley shield.
Australia’s most prominent pre-insolvency advisor ran into trouble with the tax office (ATO) last year and in 2024 trouble’s found him again.
Last week in the Federal Court the Deputy Commissioner of Taxation (DCoT) filed proceedings seeking the winding up of two companies part-controlled by Hank De Jonge, whose specialist business advisory De Jonge Read promises “pre-insolvency advice you can trust”.
The commencement of proceedings on March 20 by the DCoT follows De Jonge and co-director Ashley Shield passing a resolution on October 23 last year to wind up a company called Carringsmith Pty Ltd, which until the previous week operated under the name DJRA Pty Ltd.
According to the January 2024 report of Carringsmith’s liquidator, de Jonge and Shield tipped the company into liquidation after receiving “a creditor’s statutory demand from the ATO stating that the Company owes $232,898.59 in respect of accrued outstanding SGC (amongst other claims)”.
The report also refers to how in its capacity as trustee of the DJRA Unit Trust, Carrringsmith entered into a management deed to “manage the business operations of a related entity providing financial consulting services and pre-insolvency advice to individuals and businesses”.
In mid-2021 a related entity – Reserve View Pty Ltd – registered an All PAAP security interest over the assets of Carringsmith and in November of that year Carringsmith retired as the trustee of DJRA Unit Trust (which has since been re-named Warana Tops Unit Trust) and a related party replaced the Company as trustee.
In his RoCAP de Jonge declared the ATO was a contingent creditor in the liquidation of Carringsmith for more than $1.4 million.
Carringsmith’s liquidator, Richard Rohrt told creditors in his January 2024 report: “I understand Mr de Jonge has included the ATO as a contingent creditor on the basis that the debt was incurred at a time that the Company was trustee of the Warana Tops Unit Trust (formerly known as the “DJRA Unit Trust”).
“It is understood that this debt is now a liability of related entity Warana Tops Pty Ltd (In Liquidation) ATF Warana Tops Unit Trust (formerly known as the “DJRA Unit Trust”) (“Warana Tops”) on the basis that Warana Tops replaced the Company as trustee of the trust prior to my appointment pursuant to a Deed of Change of Trustee”, Rohrt, who is also liquidator of Warana Tops Pty Ltd said.
As it happens one of the two companies the DCoT is seeking to have wound up in the Federal Court is Reserve View Pty Ltd, Carringsmith’s secured creditor. The other is DJRA (VIC) Pty Ltd.
When contacted yesterday Rohrt said he had no knowledge of either of the applications commenced last week by the DCoT. The DCoT’s applications are due to return to court on April 24.
Further reading:
Pre-insolvency advisor changes name, winds up
ATO debt no bar to pre-insolvency guru’s expo gig
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