How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Deborah Awyzio Your Own Question
Deborah Awyzio
Deborah Awyzio, Solicitor
Category: Australia Law
Satisfied Customers: 863
Experience:  Bachelor of Laws (QUT), BIT (QUT), Family Law Accredited Specialist, over 12 years experience
Type Your Australia Law Question Here...
Deborah Awyzio is online now
A new question is answered every 9 seconds

I had a family trust which I voluntarily liquidated in 2013

Customer Question

I had a family trust which I voluntarily liquidated in 2013 with no problems after a bad investment overseas unfortunatley it went that way .
However my accountant set up a non trading beneficiary company in 2009 to make distributions to , so in 2009/10 we made a distribution from trust to company as a paper transaction only , so that company had a 150 k tax debt .
My accountant at the time in 2013 said to me the beneficiary company also needed liquidating but he advised to let creditor who was ATO to use a liquidator as we didn't have another 15 k to use a liquidator we used for the trust .
Anyway long story short the liquidator has now said I was trading insolvent and as a director I have to pay the debt owing which is 200 k , I don't owe any assets or $ and anyway I do not believe I was trading insolvent as when we received the debt the company was in a strong financial position but due to cash flows and investments etc we hadn't paid that debt back .
Submitted: 1 year ago.
Category: Australia Law
Expert:  Leon replied 1 year ago.
Good Afternoon
My name is ***** ***** I am a NSW Solicitor. Thank you for your question, and will do my best to assist you with your question.
If you were the director of the beneficiary company and it was trading then the liquidator is correct. If it owed money and it had no assets to pay them and it could not pay then you were trading insolvent and you are personally liable.
If the company was not trading then you cannot be trading insolvent.
What debt are you talking about? The ATO debt? When was that received and why did the company not pay it?
Expert:  Leon replied 1 year ago.
Good Evening
I am just following up my last post, are you still in need of assistance?