The reputation of the Australian businessman accused of intentionally ignoring tax laws in Australia has been further damaged. He faces a tax bill nearing £8 million.
The allegations against Australian David Collard have raised further questions about the decision of EY to select him as the preferred purchaser for the now-defunct battery manufacturer when it acted as its administrator.
Collard, former PwC Partner, faces a number of claims from creditors in Australia after his company Sanitex failed in November.
Britishvolt planned to build a battery gigafactory in Blyth (Northumberland)
A report from Sanitex’s liquidator revealed that the company faced a A$15 (£7.8million) bill from Australian Tax Office. A$9.5 million was a fine related to “an intentional disregard of taxation laws”.
Sanitex sold healthcare equipment, such as PPE. It had assets worth A$1.2 billion when it collapsed, but liquidators stated that much of the money was owed by Collard-controlled businesses. Other creditors include 68 employees who claim unpaid wages.
The report concluded that “the internal records of the company do not reflect the true financial situation of the company”.
The liquidators said they could file a claim in the UK against Britishvolt to recover the £6.5million Collard paid for the assets. Britishvolt is currently in administration and it is not clear how the money would be recovered.
Britishvolt had planned to build an enormous “gigafactory”, in Northumberland, that would make batteries for electric vehicles. However, the project collapsed when they ran out of funds in January 2023. Collard was chosen by EY to purchase it a few months later, but has failed to pay his full £8.5million.
In their latest report, EY’s managers stated that they are speaking with other interested parties. EY declined comment.
Separately assault charges against Collard in New York were dropped on Friday, after he agreed that he would attend an anger-management course, according to the Herald Sun.
Collard said in the newspaper that an Australian Tax Office raid last summer, which investigated his use of R&D Tax Credits, had thwarted his hopes of concluding the Britishvolt deal.
He said he would provide continued support to the liquidator to “clarify [Sanitex]’s standing”. Collard was asked for comment.