ASIC bans building boss for failure to pay tax, creditors

The corporate watchdog has moved against the boss of a failed Queensland construction group after it found he allowed his companies to trade while insolvent and rack up debts.

Liquidators expect more building companies to go bust over coming months.

The corporate watchdog has moved against the boss of a failed Queensland construction group after it found he allowed his companies to trade while insolvent and rack up debts of almost $2m.

ASIC banned Christopher Hopkinson, of Calamvale, from managing corporations for four years due to his involvement in Enco Projects, Enco Project Services, Construction Industries Precast and Specialised Workforce Group.

Hopkinson was a director of the four companies which entered liquidation between 2016 and 2020:

ASIC found that Hopkinson failed to ensure Enco Projects, Enco Project Services and Specialised Workforce Group complied with their Australian Taxation Office obligations and allowed Enco Project Services to make payments to related parties to avoid tax liabilities.

The watchdog also found Hopkinson gave an advantage to himself, related entities and his son to the detriment of the creditors of both Enco Projects and Enco Project Services;

The total amount owed to creditors across all four companies is estimated to be more than $1.982 million, of which approximately $825,911 is owed to the ATO.

Hopkinson, who is disqualified from managing corporations until 19 January 2026, has the right to seek a review of ASIC‘s decision before the Administrative Appeals Tribunal.

Liquidators expect more construction firm insolvencies in coming months.

BUSY DAY FOR ASIC

Separately, ASIC disqualified former real estate industry director Andrew Robert Galbraith, of Sheldon, from managing companies for 18 months after his involvement in four failed companies.

Between 2005 and 2014, Galbraith was a director of Plastic Recovery Services, Three Tree Investments, Aegina and ARG Mechanical.

ASIC found that Galbraith failed to ensure payment of debts, including money owed to the ATO by each of the four companies and payroll tax owed to the Office of State Revenue by Aegina.

The total amount owed to unsecured creditors is $13,396,567.92, including $2,799,397.49 owed to ATO and $121,858.29 owed to the Office of State Revenue.

THE SKINNY ON FAT BURNING

It seems all those Zoom meetings during Covid-19 have focused our attention on our appearance.

Body shaping and wellness business Body Catalyst is rolling out clinics across Queensland so we can all have tighter skin and build muscle.

Body Catalyst chief executive Samantha Barakat Light says Queensland has been the saviour of the nationally-based business with five clinics across the state opened last year and a new outlet opening in Paddington next month. Body Catalyst’s revenue dropped by 58 per cent in Sydney during the lockdowns while in Melbourne it plummeted by 91 per cent.

Body Catalyst chief executive Samantha Barakat Light.

Barakat Light (illustrated) says the Body Catalyst specialises in non-invasive technology that stimulates the body’s natural processes to eliminate fat, reduce cellulite, tighten skin and build muscle. She stresses it’s not all about looks but also to improve people’s self esteem and body image.

Barakat Light says one of the most popular services offered was “fat burning” which a new technology using ultra-low temperatures to get rid of stubborn flab on parts of the body.

Body Catalyst started in 2015 with Barakat Light working out of her first clinic at Bondi Junction and sharing a space with a beautician to cover costs. The business now has 160 employees across 34 clinics and is hiring 15 new workers a month to keep up with growth.