BCI Finances Pty Ltd (in liq) v Binetter (No 4)

The Federal Court has ruled that two directors of a company (one a de facto director rather than a registered director) that engaged in a tax evasion scheme breached their duties as directors, allowing liquidators of the company to personally recover amounts related to the tax debts of the company from the directors. The scheme involved the establishment of sham “back-to-back” loan arrangements with foreign banks that enabled the company to hide offshore deposits. The two directors were found to have been actively involved in the establishment of the scheme, in lodgment of false tax returns and in concealing the existence of the offshore deposits from the ATO, in breach of their statutory and common law duties to the company.


Gleeson J, BCI Finances Pty Limited (in liq) v Binetter (No 4) [2016] FCA 1351 (18 November 2016)



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