Liza Emanuele: Leading Adelaide designer owes $113,000 tax bill
ONE of South Australia’s leading fashion designers, Liza Emanuele, is embroiled in a court dispute over a six-figure tax bill.
ONE of South Australia’s leading fashion designers is embroiled in a court dispute over a six-figure tax bill.
Liza Emanuele, 42, is being pursued by the Australian Taxation Office over claims her retail business has defaulted on a debt worth more than $100,000.
The Federal Court action could force Ms Emanuele, best known for her popular signature label, to shut down her Adelaide-based retail business if it fails to pay the bill.
But an emotional Ms Emanuele, who launched her retail business in June 2009, told The Advertiser she was working hard to pay back the $113,107.96 bill.
The mother-of-two, who manufactures her clothes in Adelaide, has urged the South Australian public to continue “supporting my team”.
“I obviously feel really responsible for my staff who have been loyal to me,” she said.
“I do my best. I do provide jobs and I do give a lot to this industry. I am trying to keep everything in Adelaide. The money stays here.”
Ms Emanuele said two full-time staff and six casual employees were paid on time every week and that she met all of her obligations to her other creditors.
“I have been trying to get ahead so I could pay (the ATO debt),” she said as she fought back tears.
“It has been difficult for retail in the state. We have some really good months. Having a business has just not been easy. I feel awful about it. I have been working six days a week.
“I really have been having a tough time. I want to … continue making my clothes. It is just something that got out of hand. I wish it wasn’t like this.”
Ms Emanuele, of Mitcham, was on Thursday working with her accountants to solve the dispute and was being supported by her mentor, fellow fashion identity George Gross.
Concerned staff were also told of the dispute, which does not involve the fashion side of her business that records show she launched in August 2001.
Ms Emanuele is a regular on Adelaide’s social scene and a generous donator to charity.
The ATO launched its action on Monday over the debts related to her business activity statements (BAS), which is used to pay taxes including the GST and fringe benefits.
In its submission, Deputy Commissioner of Taxation David Diment said there had been “failure to comply” with demands to pay the debt, which she had subsequently defaulted on.
Court documents claim the fashion designer, who has an online website and shopfront on King William Rd, was given 21 days in April to pay the outstanding debt or face insolvency proceedings under the Corporations Act.
“A failure to respond to a statutory demand can have very serious consequences for a company,” concludes a creditor’s statutory demand for payment of debt, lodged with the court.
“In particular, it may result in the company being placed in liquidation and control of the company passing to the liquidator of the company.”
The documents say she failed to pay the tax bill and that BRI Ferrier insolvency firm have been appointed provisional liquidator to wind up the business.
Ms Emanuele has been a mainstay of the country’s fashion scene for more than a decade and is well-known for her bridal range, trademark sexy dresses and glamorous high-end styling.
The matter is listed for an Adelaide hearing in August.
Who is Liza Emanuele?
Liza Emanuele started her fashion career at the leading Instituto Maragoni, in Milan, Italy.
After working with Italian labels Fast, Killer Loop and Think Pink in the early 90s, she returned to Australia to work on design teams at George Gross & Harry Who and Sportsgirl.
In 2001, she successfully started her first label It Girl before launching her signature fashion label, Liza Emanuele four years later.
In 2008, she expanded with Emanuele Bride, with couture and ready-to-wear bridal gowns, “gorgeous” bridesmaids, flower girls and “special occasion” dress-wear.
A year later she opened her first signature retail shop in Hyde Park.
She is known for her outfits for the Tour Down Under podium, and Clipsal 500 grid girls, as well as dressing Olympic gold medallist Anna Meares and jockey Clare Lindop.
She is expected to be one of the designers on show at this year’s Adelaide Fashion Festival.
According to her website she is “well regarded by peers and has become one of her home town, Adelaide’s, most popular personalities”.