ASIC appoints liquidators to online tax front

The Australian Securities and Investment Commission (ASIC) has today appointed provisional liquidators to an online tax business after evidence pointed towards foul play.

In a statement issued by ASIC today, Federal Court Justice Julie Anne Dodds-Streeton said that there was sufficient evidence to suggest that Tax Returns Australia Dot Com Pty Ltd and Online Returns Pty Ltd had been withholding "substantial amounts of money received as tax refunds on behalf of the Australian Taxation Office".

Clients submitted their tax details to the web-based company on the understanding that it would submit the details to the tax office and pass on the return, less a small fee.

Justice Dodds-Streeton also noted that the two companies may have used the funds to purchase a holiday house in Queensland.

The appointment of provisional liquidators comes several weeks after Victorian Police commenced investigations into the business.

Investigations into the company are ongoing.