A 17-year security service was on the brink of liquidation after the Australian Taxation Office (ATO) cracked down on unpaid taxes In an unfortunate turn of events, Neville Mader, the driving force behind Perth Security Services (PSS), found his life’s work hanging by a thread.  As if contending with the pandemic-driven downturn wasn’t enough, a snowballing legacy tax debt threatened to unravel everything he had built. The company was hit with a $400,000 tax bill after successfully contesting a superannuation claim leveled by an employee. Mader said he had no choice but to hand the reins over to administrators in May, when he was hit with a letter demanding payment within 21 days. “In the first few weeks, I didn’t really know how this was all going to play out, and it was really depressing. I’ve been in business for 17 years, and we were at risk of becoming a statistic,” he said.  The administrators managed to ink an eleventh-hour deal with a Melbourne-based investor willing to purchase 80% of the company. But when presented with the deed of company arrangement, Mader said the ATO opposed it in favor of placing the company in liquidation, which would have involved selling off its assets and dissolving the business as a means of recouping the debt. Mader managed to get the deed over the line, with PSS exiting administration earlier this month. While this is a good outcome for Mader and his employees, this serves as a cautionary tale for other West Australian businesses. The ATO has instigated 47 wind-up notice in Western Australia this year, 21 of which have been successful. This is a sharp increase in the handful of wind-up proceedings that were launched in the past years.  So if you’re a struggling business owner, it’s time to act quickly and seek professional advice.  Contact Ava Advisory at 1300 181 220 to discuss the ATO tax payment plan and explore options to avoid liquidation. Early intervention is key, so don’t hesitate to reach out.