Winding up bid wins over appeals for accountant’s ill health

Justice Fiona Meagher of the Federal Court of Australia has ruled in favour of the Deputy Commissioner of Taxation’s application to have Medicheckr wound up in insolvency.

The Tax Office’s originating process relied on a creditor’s statutory demand for the sum of $70,462.20.

In submissions emailed to the court the day before the final hearing of the originating process, Medicheckr’s director requested permission to satisfy the debt and have the proceedings either dismissed or discontinued.

He claimed Medicheckr had acted in good faith, but its taxation affairs fell into arrears “due to its accountant’s health issues”.

This meant several lodgements remained outstanding and the taxation affairs were “not properly reconciled”.

The accountant was engaged to rectify the position and bring outstanding lodgements up to date “upon [the director] becoming aware of the extent of the issue”, the court was told.

Justice Meagher was advised by Medicheckr that the preparation and lodgement of all outstanding business activity statements and income tax returns “were underway”, and the director personally had the funds to satisfy the debt.

“In circumstances where the defendant was able and willing to satisfy the debt, continuing the winding up process served no practical purpose,” the court also heard.

However, no evidence was provided to support this submission.

“They were no more than bare assertions,” the justice said.

“In particular, no evidence was before the court regarding the possibility that the defendant’s financial position may, in the near future, change such that the court should not exercise the discretion to order that it be wound up in insolvency.”

There was also no evidence regarding the effect of Medicheckr completing the outstanding lodgements on its ability to satisfy the debts, nor evidence as to the director’s capacity to pay up.

Given the director has been on notice of the originating application since 9 February, has been on notice of the final hearing since 25 March, and has had solicitors on the record until 23 June, “it is surprising that, apparently, no action has been taken on the defendant’s or [director’s] part to arrange for payment of the debt, assuming that [the director] or the defendant is or will be able to pay it”.

Justice Meagher was not satisfied Medicheckr’s circumstances are such that the court’s discretion under the Corporations Act 2001 should be exercised other than to wind it up in insolvency.

There was some back and forth over whether Medicheckr was properly served with the originating application, but the court was not satisfied that any substantial injustice had occurred.

Citation: Deputy Commissioner of Taxation v Medicheckr Pty Ltd [2026] FCA 1524.