Australian Tax Office targets Kleenmaid boss Brad Young
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Mr Young and his brother Andrew founded their Sunshine Coast company 24 years ago, building it into one of Australia's most successful franchises, with a $90m turnover last financial year. But the group collapsed into receivership last Easter, leaving $82m in debts to 4500 creditors.

The Australian
August 4, 2009

Australian Tax Office targets Kleenmaid boss Brad Young
Natasha Bita

The tax office is chasing failed Kleenmaid founder Brad Young for $1 million.

The Deputy Commissioner of Taxation has lodged a claim in the Supreme Court of Queensland against Mr Young for $1,033,855, plus interest and legal costs, The Australian reports.

The Australian Tax Office alleges that Mr Young - whose up-market whitegoods company collapsed owing $82m to creditors - failed to pay 14 months' worth of "pay as you go" deduction debts.

Under Australian tax law, the directors of a company may be held personally liable for PAYG debts - unless they make a repayment plan with the tax office, appoint an administrator or start to wind up the company.

The statement of claim by the tax office, filed in the Supreme Court in Brisbane on July 10, says that Mr Young was a director of Kleenmaid Retail Pty Ltd from September 1, 2007, until February 23 this year.

It lists the company's monthly PAYG deductions as ranging from $51,835 to $111,171 during Mr Young's time as a director.

"The defendant is liable to pay to the commissioner the total sum of the penalties, which is $1,033,855," the statement of claim alleges.

Mr Young and his brother Andrew founded their Sunshine Coast company 24 years ago, building it into one of Australia's most successful franchises, with a $90m turnover last financial year.

But the group collapsed into receivership last Easter, leaving $82m in debts to 4500 creditors.

The crash affected thousands of home renovators who had paid for expensive Kleenmaid kitchen and laundry appliances that were never delivered. More than 150 staff lost their jobs.

Both brothers and their wives are being sued over allegedly unpaid rent on Kleenmaid's headquarters at Maroochydore.

http://www.theaustralian.news.com.au/story/0,,25877362-2702,00.html


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