Pallion Group: Timeline of missing detail, controversy, and legal dispute

Palabc Holdings Pty Ltd (later EBS & Associates Pty Ltd) is incorporated with the directors being Andrew Cochineas, Philip Cochineas, Jane Simpson and Francis Gregg (Simpson's father).

Palabc Holdings Pty Ltd is renamed EBS & Associates Pty Ltd for, broadly described, the acquisition and refining of gold, silver and other valuable materials into fine metal.

The Australian Taxation Office (ATO) commences an audit into EBS & Associates' GST affairs.

A new company - ABC Refinery (Australia) Pty Ltd - is incorporated. The directors at the date of its incorporation were the same people who were the directors of EBS & Associates, together with Mr Paul Cochineas.

The shares in the Company were all owned by Pallion Group Pty Ltd a company incorporated on 3 November 2014 whose directors were the same persons as the directors of EBS & Associates, together with Mr Philip Williams.

At the time EBS & Associates was under audit as to its GST affair it transfers its business and assets to ABC Refinery.

This will become known as "September 2015 transaction".

The ATO commences an audit into ABC Refinery's GST affairs.

The audit into EBS & Associates' GST affairs concludes. The ATO issues notices of amended assessment to EBS for more than $122 million and notices of penalties totalling more than $58 million.

EBS & Associates objects to the notices. The challenge reached the Full Court of the Federal Court before it was remitted to the Administrative Appeals Tribunal.

Shortly after the ATO disallowed EBS & Associates' objections, it entered into a creditors’ voluntary liquidation.

Special purpose liquidators (Rahul Goyal and Jennifer Nettleton of KordaMentha) are appointed to investigate EBS & Associates' September 2015 transaction. However, more legal action ensued.

The ATO issued notices of assessment to the Company and on 27 July 2017, the Company lodged objections against some of the notices of assessment.

A new company titled ABCRA Pty Ltd was incorporated. Its directors were and remain Andrew Cochineas, Philip Cochineas, Francis Gregg and Jane Simpson. Its sole shareholder is Pallion.

EBS & Associates changed its name from ABC Refinery (Australia) Pty Ltd to ACN 607 537 548 Pty Ltd. ABCRA Pty Ltd changed its name to ABC Refinery (Australia) Pty Ltd (ABCRA2).

Then EBS & Associates and ABCRA2 entered into agreements and transferred all of its business, goodwill and assets to ACBRA2. All of the directors of the Company ceased to hold that office, with the exception of Andrew Cochineas.

This will become known as "September 2017 transaction".

EBS & Associates lodges further objections against notices of assessment.

Pallion Group transferred its shares in EBS & Associates to a company titled ACN 133 769 187 Pty Ltd which is a company Andrew Cochineas has been at all material times the sole shareholder and director.

A new liquidator is appointed for EBS & Associates. The appointment was made at the instigation of the Company’s sole shareholder Andrew Cochineas.

The liquidator provides his first report to creditors. He discloses that he was referred by Andrew Robinson of Robinson Legal in his capacity as solicitor for the Company and he had pre-appointment dealings with Andrew Robinson, Andrew Cochineas and/or Philip Cochineas on seven occasions in November.

Andrew Cochineas advises the liquidator that he would provide an upfront payment of $20,000 as a contribution toward the cost of litigation and that further monies and/or indemnities were likely to be provided for further litigation in relation to the challenges to the objection decisions; and the liquidator did not consider that the referral to him by Andrew Robinson placed him in a position of conflict of interest or duty.

The ATO foreshadows applying for special purpose liquidators to investigate the September 2017 transaction.

The liquidator for EBS & Associates lodges further objections against notices of assessment.

The liquidator issued his second report to creditors and indicates potential misconduct by the Company's officers and proposes an investigation. He advises the September 2017 transaction may be a voidable transaction; and also stated that “related entities” had proposed that he enter into a funding agreement with Pallion to cover the cost of investigating the notices of assessment.

The liquidator issued his third report to creditors and states that he had received a proposal from Pallion Group and Andrew Cochineas to fund an investigation into the legitimacy of the ATO's notices of assessment and, if appropriate, to challenge those notices.

The liquidator for EBS & Associates argues for investigating both the September 2017 transaction and the notices of assessment acknowledging the tension between the positions of the ATO and Pallion Group.

The ATO expresses concerns about a potential conflict of interest if the liquidator is funded by Pallion Group given that Pallion Group was involved in the September 2017 transaction, which may be voidable. 

The liquidator's proposal for funding by Pallion Group is approved with his casting vote.

Further correspondence occurs between the ATO and the liquidator regarding funding and conflict of interest.

The ATO determines the objections lodged by EBS & Associates, mostly disallowing them.

EBS & Associates appeals the ATO's decisions.

The liquidator for EBS & Associates requests an indemnity from the ATO to fund investigations.

The ATO rejects the indemnity request.

Correspondence between the ATO and the liquidator regarding the ATO's application to the Federal Court of Australia for special purpose liquidators.

The Court appoints special purpose liquidators to investigate the September 2017 transaction due to concerns about a potential conflict of interest with the existing liquidator. The ATO agrees to fund the investigation.