Elution Metals faces wind up amid claims Tom, Kirsten Peever ‘breached’ ATO freezing orders
A Queensland couple who allegedly owe $200m to the ATO after splurging on luxury cars and jewellery now survive on $4333 a month as their mining operation is likely to be wound up.
In a civil case, Tom Peever and his wife Kirsten are facing allegations in the Federal Court that they carried out a false mining operation to claim research and development tax breaks and GST refunds worth $200m. The claims relate to Elution Metals and a string of about 30 other companies.
Elution had a deal with former market darling CuDeco, which ran the Rocklands copper mine in rural Queensland at Cloncurry before it fell into liquidation, to procure high-grade cobalt, copper and gold concentrate out of tailings.
A group of key investors in Mr Peever’s Elution allegedly started hearing fewer and fewer updates about the project between 2021 and 2022, and receivers have previously cast doubt over the viability of the tailings storage facility.
Tom and Kirsten Peever at their wedding.
The ATO claimed in court documents some of this cash was spent on luxury properties, art, cars and jewellery. They won freezing orders against the Peevers, who are currently granted $4333 per month between them on combined living expenses plus additional cash for reasonable legal and medical bills.
Lawyers appearing for the ATO told the Federal Court on Monday, letters have been issued to the company taxpayers in the case — which includes Elution Metals — notifying them that winding up steps are being taken against them.
If a company is wound up, shareholders are normally entitled to the surplus that remains after a company has paid off its creditors and paid other outstanding liabilities.
They also alleged there have “been some breaches of the freezing orders” and claimed $2000 and $1000 cash withdrawals have been made from the Peevers’ bank accounts.
“The commissioner is considering whether to take action on those breaches,” the court heard.
The ATO is seeking “slightly more monitoring or restrictive provisions” to monitor the application of those freezing orders, the court heard.
For Mrs Peever, barrister Tom Ellis told the court his client would like to change the freezing orders, so medical bills could be paid more easily.
Mr Peever and one of his children have encountered significant medical bills, and a number of surgeries have come up. Changes to the freezing orders could allow medical bills to be paid based on estimates, the court heard.
Mr Ellis said these types of expenses can arise on short notice when solicitors are not available, but require fast action.
Mr and Mrs Peevers are being represented in court by two separate law firms. The couple have not previously responded to The Australian’s requests for comment.
The matter will return to court in late September.
