One company has failed in its arguments of unfair preference and insolvent transactions to secure $7 million in repayments from the Tax Commissioner, who identified an alleged insolvency as a “mere presence of a liquidity problem”.
The Supreme Court of Western Australia has scrapped an application by LCM Recoveries Pty Ltd in pursuit of repayment of $7,005,329.27 for a total of 86 impugned transactions over the period 24 December 2012 to 6 June 2013 made to the Commissioner of Taxation, on behalf of Construction Industries Australia Ltd (CIA).
LCM argued that each of the 86 transactions made to the commissioner reduced CIA’s tax liabilities, and were voidable transactions due…