Cor Cordis pair forced to liquidate developer's delinquents

Ozem Kassem
Image courtesy Cor Cordis

Cor Cordis partners Ozem Kassem and Daniel Jurotawitch must continue winding up two companies controlled by Sarkis Nassif after a judge rejected the millionaire developer's application to terminate the liquidations.

Citing a lack of evidence and concerns that the companies may have exhibited "a lack of commercial morality," Justice Stephen Robb had invited the applicants to bring fresh evidence but the deadline for that passed this week, meaning Kassem and Juratowitch must continue liquidating two companies the judge said have neither assets nor liabilities.  

"I am also not satisfied on the present evidence that I should make the orders sought, because of a real issue of whether the companies were used, or conducted their activities in a manner, which exhibited a level of commercial immorality that would justify refusal of the orders," the judge said in a recent judgment.

"There are grounds for questioning whether 

Daniel Juratowitch
Image courtesy Cor Cordis

the taxation affairs of the companies were conducted having proper regard to the obligations of the companies to comply with the relevant taxation laws."

Justice Robb did concede that the initial reason for placing the companies into liquidation: "may have been the disallowance of a claim that the purchase of the Property did not involve a taxable supply, and that expectation was disappointed by the position adopted by the ATO."

And he emphasised that his concern in regards to agreeing to the application was an absence of sufficient evidence, "rather than any positive finding of the existence of conduct that would cause the court to exercise its discretion against making orders to terminate the windings up".

"However, the evidence suggests that both companies may have been seriously delinquent in relation to aspects of their taxation obligations. It is unfortunate that the apparent absolute confidentiality of the settlement agreement with the ATO impedes the illumination of this question."

Nassif's application - lodged in the Supreme Court of NSW in October 2015 - sought orders terminating the liquidations of Avenue Capital Investment Pty Ltd (ACI) and 82 - 84 Belmore Street Pty Ltd respectively. Nassif is ACI's sole shareholder. 82 - 84 Belmore is controlled by Holdmark Holdings, another Nassif-controlled entity.

Liquidators agree to vacate examinations while ATO audits Sarkis Nassif and Holdmark Group

Sarkis Nassif with former
Governor of NSW Marie Bashir
Photo: Holdmark Property Group

PROPERTY developer Sarkis Nassif has succeeded in postponing a grilling in the NSW Supreme Court after reaching agreement with liquidators to vacate a planned public examination.

Consent orders to vacate five days of examinations into the affairs of 82 - 84 Belmore Street Pty Ltd were made last week, despite Justice Ashley Black previously rejecting an application by Nassif and others to have the examination summons stayed or set aside.

Cor Cordis partners Ozem Kassem and Daniel Juratowich allege the company sold properties to related parties at depressed values and neglected to pay sales tax on apartment sales valued at $173 million.

Sarkis Nassif responded to SiN's enquiries through his solicitor Marc Ryckmans of Somerset Ryckmans.

"Mr Nassif completely rejects the claims made by the liquidators," Ryckmans said.

"We note that there are proceedings currently on foot in which my clients have traversed by way of denial each of the allegations raised by the liquidators of 82-84 Belmore Street Pty Ltd (in Liquidation).

"In particular the liquidators have alleged that certain units were transferred to related entities at undervalue. This particular allegation is strenuously rejected and my clients assert that all units were transferred at values determined by independent expert valuers."

The issue of sales tax is pertinent because the Australian Tax Office (ATO) - potentially the only significant creditor of the company apart from the liquidators - is in the middle of an extensive audit of Nassif and his Holdmark Property Group.

"So far as concerns the ATO, Mr Nassif and his group of companies is a substantial developer. Its current advisers are presently working with the Australian Taxation Office and those discussions remain confidential," Ryckmans said.

Initially Kassem and Juratowitch opposed the set aside application, arguing that another opportunity to hold the examinations might not present itself before April 2015 when the three year statute of limitations on challenging transactions on the basis that they may be uncommercial expires.

But a statement from the liquidators' lawyer indicates that compliance with notices to produce documents - combined with an unspecified "commercial settlement" between the liquidators and Nassif - was sufficient for them to back off.