Network installer BMT slammed by ASIC over tax dodge and debt

Three liquidated fibre optic network businesses have been slammed by the Australian Securities and Investments Commission (ASIC) over their owner allegedly failing to lodge tax returns and incurring over $1.1 million in debts.

According to ASIC, Matthew John Reid from Brown Hill, Victoria, was a director of BMT Contracting, BMT Communications and BMT Group Services from June 2017 to October 2021.

During this time, ASIC alleged Reid failed to comply with statutory obligations, including the lodgement of income tax returns.

At the time of ASIC’s decision, the three companies owed a combined total of $1,167,251.49 to unsecured creditors, including $274,985.32 to the Australian Taxation Office (ATO).

He also allowed BMT Group Services to enter into an unsecured loan with him for nearly $500,000 with no formal loan documents at a time when the business was experiencing financial difficulty, ASIC claimed, as well as allegedly allowing it to incur debts when it was insolvent.

Additionally, he allegedly caused BMT Communications to pay creditors and make repayments on behalf of BMT Group Services and BMT Contracting, as well as supposedly failing to ensure that BMT Group Services and BMT Communication complied with obligations to keep true and accurate financial records.

ASIC said to come to its decision, it relied on supplementary reports lodged by BMT Group Services liquidation Con Kokkinos of Worrells and BMT Communications liquidator Justin Howlett of SMB Advisory.

Reid can seek a review of the decision by the Administrative Appeals Tribunal.