NSW government subcontractor collapses with millons in tax debt

A Greek Australian led Sydney subcontractor that works connected large NSW authorities jobs has collapsed.

According to AFR, M2 Sustainable Services trading arsenic Metsquare 2, whose manager is eco-tech capitalist Kirk Tsihlis, owes millions of dollars successful taxes.

Last Friday the Australian Taxation Office (ATO) forced the institution into liquidation implicit $6.7 cardinal owed successful GST and Pay As You Go tax.

The institution had taken implicit the contracts and employees of Metsquare, which was backed by Tsihlis’ concern vehicle, aft the second institution went into medication successful 2023 owing $23 cardinal successful taxes.

This brings it and its related entities’ total tax indebtedness to astir $30 cardinal successful conscionable 4 years.

Some of the authorities projects the Metsquare companies did work connected included the Victoria Cross Metro Station and Wyong Hospital, and according to tribunal documents, it was working connected Sydney Children’s Hospital and Westmead Children’s Hospital.

It’s latest iteration besides had $13 cardinal successful contracts under way, positive upcoming contracts with authorities agencies.

Industry sources said different Tsihlis-backed institution was working connected a state authorities infirmary task successful western Sydney but Tsihlis said helium has present exited that company.

Tsihlis said the latest tax indebtedness with Metsquare 2 (now called Precision Cut Services Australia) was owed to “trading losses”.

“We tried to negociate with the ATO regarding those [tax debts],” helium said.

“We made important payments and asked for further clip and couldn’t marque it work. If thing you’ve got very hard trading conditions and you’ve got a tax bureau that is perfectly vigilant and makes it very hard to operate.”

His radical is present “exiting completely” its positions successful the formwork assemblage arsenic it was “way too tough”.

“We person made losses successful this space, arsenic has astir of the industry,” helium said.

He added that Metsquare 2, which is enactment to a deed to wage conscionable 8.9¢ successful the dollar of Metsquare’s $23 cardinal tax debt, was still successful talks with the ATO.

Industry sources said that different Tsihlis related company, Equipmet, was being considered for work connected a Cumberland Hospital project.

Tsihlis was manager of Equipmet until January 31, according to a backdated ASIC filing connected February 20, and was replaced by an worker of Metsquare.

Tsihlis said helium had exited the institution wholly “weeks ago” but when told that the ASIC records showed his institution Halifax Central still had a 50 per cent fiscal interest, helium said: “It should person been updated. I’ll inquire my accountant why it hasn’t.”

Transport NSW investigation

This comes arsenic past period the NSW absorption questioned the authorities approving different Tsihlis-backed company, GoZero, to supply it with 126 electrical buses.

This was owed to Tsihlis’s past with companies defaulting connected tax.

GoZero has precocious agreed to merchantability for astir $400 million.

Minister for Finance Courtney Houssos said the GoZero institution that won the declaration did not person Tsihlis arsenic a manager and told parliament connected February 20 that Transport for NSW was investigating the matter.

Shadow treasurer Damien Tudehope said helium was surprised the curate for home manufacturing and authorities procurement was not alert of Tsihlis’s involvement.

Tsihlis accused the absorption of making “factually incorrect statements … for governmental point-scoring under the veil of parliamentary privilege”.

He said helium was a shareholder, not a committee member.

“I haven’t been successful GoZero Group for a agelong time,” helium said.

“I’ve been a passive shareholder since inception – we’ve invested wealth successful GoZero. That’s our job. We put successful aboriginal stage businesses, crossed a batch of spaces, and if they work and are successful we get retired of that.”

Transport for NSW is said to beryllium successful the last stage of investigations.