Yeo the man for ATO

Andrew Yeo
Pitcher Partners’ Andrew Yeo.

Pitcher Partners’ Andrew Yeo is proving that unfortunate findings about negligent and deceptive conduct by distant colleagues have not damaged his mutually beneficial relationship with the Australian Tax Office.

In: McDermott and Potts in their capacities as joint and several liquidators Of Lonnex Pty Ltd (in liquidation) (Acn 097 786 751) [2019] VSCA 23 (19 February 2019) Melbourne-baed Yeo emerges yet again as the ATO’s go to man.

The ATO has been funding Ross McDermott and John Potts as joint liquidators of Lonnex Pty Ltd in relation to litigation McDermott originally commenced against related entities, back when he was sole liquidator of Lonnex.

McDermott originally sought declarations that a release of debts which Lonnex gave to Lonnex & Millennium Management Holdings Pty Ltd (LMMH) was an uncommercial transaction under s 588FB of the Corporations Act 2001 (Cth) (‘the Act’) and an unreasonable director-related transaction under s 588FDA. McDermott wanted judgment in the sum of $22 million.

Eventually, and after spending more than the ATO had supplied, McDermott and Potts sought court orders that they were justified in entering into a settlement.

The ATO opposed that application and a judge refused them.

They then appealed the associate judge’s refusal in the Victorian Supreme Court and the ATO appeared, again opposing any settlement and seeking to replace McDermott and Potts with Yeo, whom the ATO has indicated it is prepared to fund.

Yeo meanwhile is the liquidator of a separate but related entity, Millenium Management Pty Ltd (MM).

If he is appointed liquidator of Lonnex and receives funding to pursue the Lonnex and the MMH proceedings, it’ll notch up another funding agreement with the ATO to go with bucket loads the ATO is paying him to investigate alleged phoenix-facilitator Phil Whiteman and God knows who and what else.

Yeo can’t keep a good man down.

Further reading:

Accounting firm ordered to pay client $3.3m

Vic Liq Consents To Compliance Gauntlet

About the Author

Peter Gosnell
Insolvency News Online illuminates the practice of insolvency Australia-wide, highlighting the triumphs and travails of the nation’s registered practitioners and the accounting and legal professionals who work with them. INO is produced by Peter Gosnell, former business editor and senior business reporter at The Daily Telegraph newspaper. During a decade-long career, your correspondent reported on such notable corporate collapses as HIH, One.Tel, Westpoint and Fincorp as well as some of the nation's highest profile bankruptcies and the investigations and prosecutions arising from Australia's most notorious instances of white-collar crime.

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