Arm of major building company on brink of possible collapse over $22m unpaid tax debt

The company, directed by a lawyer, is on the brink of possible collapse and is connected to one of Australia’s major builders.

A company linked to a major Australian builder is on the brink of possible collapse over a $22 million unpaid tax debt.

Last Friday, the Deputy Commissioner of Taxation took a building related company called ACN 152 259 839 Pty Ltd to the Federal Court calling for the business to be wound up on the grounds of insolvency.

The company has indicated it plans to legally challenge the move.

The company was previously called Maxcon Developments Pty Ltd and based in Victoria.

The tax office claims that this business had unpaid taxes dating all the way back to 2014 and that it owes a grand total of $22.88 million.

Maxcon Developments is now a shut down arm of Maxcon Constructions Pty Ltd, a major builder headquartered in Melbourne which completes projects like multistorey high-rises in Victoria, and previously did so in South Australia and Queensland.

A Maxcon Constructions spokesperson said they are disputing the debt and defending themselves against the tax office.

“Maxcon Constructions Pty Ltd and its director deny any allegations of any wrongdoing or that any tax is outstanding and will proceed to defend the allegations to the fullest extent of the law, but otherwise cannot make any further comment as the matter is currently before the court,” the spokesperson told news.com.au.

Maxcon Constructions says is fighting the ATO in court over claims it owes money.

Maxcon Developments used to be headquartered in Flinders Lane in Melbourne.

In May 2022, Maxcon Developments changed its company name to its business number and its registered office switched to elsewhere in Melbourne.

The company also changed hands, with lawyer Dimitrios ‘Jimmy’ Diakou becoming its new director.

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Maxcon Developments has been a registered business since 2011 and news.com.au understands it provided support services to developers in the construction industry.

The tax debts are from between 2014 and 2020, and it has ceased trading since then.

About half of the eye-watering $22 million debt is from penalties racked up from failing to pay these debts, from general interest charges and administrative penalties.

The corporate regulator, ASIC, deregistered Maxcon Developments from the business register in June this year.

ASIC usually strikes a business off the register if it has reason to believe that company is no longer in business, including if its annual fees haven’t been paid.

Maxcon Developments will need to put itself back on the register in order to fight the ATO’s legal claim.

The tax office also took Maxcon Developments to court last year but this matter was dismissed in December 2023.

Maxcon Developments is due in court again later this month, on August 23.

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