Australian Securities and Investments Commission (ASIC) announced it has obtained orders in the Federal Court of Australia appointing provisional liquidators to Tax Returns Australia Dot Com Pty Ltd (TRADC) and Online Returns Pty Ltd (Online Returns).

These orders follow an ASIC investigation in January 2010 after concerns were raised that clients of both companies had not received tax refunds and stimulus payments owed to them. Both TRADC and Online Returns operated a website through which taxpayers could submit a tax return to the Australian Taxation Office (ATO).

Justice Dodds-Streeton ruled that there was sufficient evidence to suggest that both companies had failed to pay clients substantial amounts of money received as tax refunds on their behalf from the ATO. Her Honour also concluded that the companies may have allowed tax refunds received on behalf of clients to be applied, without justification, to the purchase of a holiday property in Port Douglas, Queensland.

Ross Blakeley and Quentin Olde, of Taylor Woodings, were appointed provisional liquidators of both companies.