A high-flying pubs and hotels group is under investigation by the Australian Taxation Office over $100 million in GST refunds after a company linked to the group’s former managing director was fined for its own dodgy claims.

Property developer Virtical exploded onto the Sydney and Melbourne hospitality scene last year after spending more than $125 million on iconic pubs in just four months. The company pitched itself as a burgeoning hospitality empire based around a strategy of snapping up trophy venues and revitalising them with multi-million dollar renovations.