Adcon and Descon director Danny Isaac disputes tax, superannuation demands after employee’s illness

The director of a besieged building and development group claimed he didn’t know how much tax or superannuation his companies had paid because his accountant got sick.

The director of a besieged building and development group claimed he didn’t know how much tax or superannuation his companies had paid because his accountant got sick.

Three companies in Danny Isaac’s Adcon Group have applied in the Brisbane Supreme Court to set aside statutory demands from the Deputy Commissioner of Taxation.

As director of Adcon Engineering, Adcon Structural Steel Group and Adcon Admin, Mr Isaac disputed the amount his companies owed, saying he was unaware of whether his former accountant had made any payments.

In his affidavit Mr Isaac, who has also been known as Sami Adib, said he’d discussed the outstanding debt with his accountant Alex Kane who “told me he was going to make these lodgements shortly”.

Descon Group Australia director Danny Isaac.

During the conversation, in October last year according to the affidavit, Mr Kane advised Mr Isaac that his companies owed less tax debt than had been demanded.

They also discussed paying outstanding superannuation and “Mr Kane confirmed that these payments would be made as a priority”, the affidavit said.

However the following month, Mr Isaac’s affidavit said Mr Kane “had been diagnosed with cancer and was to commence treatment immediately”.

After that he “became harder to contact” and Mr Isaac was “unaware of whether Mr Kane made the lodgements as discussed”, the court filing stated.

Owners are yet to take possession of apartments at The Waverley Residences, under construction by Descon in Southport.

It also stated that Mr Kane resigned as Mr Isaac’s accountant in June this year.

Mr Isaac’s affidavit said he had engaged a new accountant; was “preparing objection documents” for the ATO; and was taking legal advice on a possible appeal of the tax office demands in the Administrative Appeals Tribunal.

It also said he did not believe the tax office had properly lodged its statutory demands as they’d been sent to a post office box instead of the companies’ registered address.

The amount of alleged unpaid tax and superannuation has not yet been revealed in public court documents and the Deputy Commissioner has not lodged a response to Adcon’s applications.

Descon chairman Danny Isaac with Wentworth Equities directors Simon Slavin and Sameh Ibrahim at the $70m Hamilton Towers site which Descon contracted to buy but did not settle.

Separately, Mr Isaac and six of his companies, including Descon Qld, are also being sued by the tax office, which alleges they owe $3.2m.

His Brisbane-based Adcon Qld cancelled its $140m revenue open building licence in March, a month after the QBCC banned it from working in the open category for not having a suitable nominee.

Despite its troubles, Descon Group Australia still holds an unrestricted category seven open builder licence for maximum revenue over $240m, with no conditions imposed on it.

Descon has dropped out of billions of dollars worth of Gold Coast construction projects in the past 10 months.

Under the QBCC Act, a person may be banned from the industry indefinitely if they have been involved with two insolvency events.

Artist impression of Iris Capital's $800m twin tower project Victoria & Albert Broadbeach which Descon contracted to build but was terminated by the developer.

Although Mr Isaac, at that time going by Sami Adib, was director of three companies which went into liquidation, the QBCC said it was too long ago for it to act.

“As these liquidations occurred in or prior to 2013, they are outside of the insolvency time-limit provisions of the QBCC Act,” the commission said in a statement.

“The QBCC carefully considers all information it receives regarding licensee conduct and investigates when appropriate.

“In cases where improper conduct is proven, the QBCC may take regulatory action or refer matters to other agencies, including the police.

“The QBCC does not comment on specific investigations so as not to prejudice its operational activities.”

In a now-settled case with Amex, Mr Isaac blamed his former personal assistant and lover for a six-figure debt.

Descon Group’s Gold Coast projects include the stalled Waverley Residences at Southport and the $76m Allure at Chevron Island, which it took on after the $56m collapse of Condev exactly one year ago.

It is also building Tallis Property group’s $180m Akin Residences in South Brisbane.