ATO seizes control of Adgemis bankruptcy proceedings
The Australian Taxation Office (ATO) has taken charge of bankruptcy proceedings against Jon Adgemis, with the Federal Court declaring him bankrupt on Friday and appointing Andrew Yeo of Pitcher Partners as trustee for three years. The decision overrode Adgemis’ own attempt a day earlier to declare bankruptcy owing A$1.8 billion, after telling creditors he took responsibility for “the position that has been reached”.
Pitcher Partners will investigate Adgemis’ affairs, review prior work by former trustee WLP Restructuring and examine “associated entities and structures”, with a report flagged in four weeks. The ATO bankrupted Adgemis over more than A$162 million in declared tax debts, while court filings indicate liabilities the agency is pursuing are understood to be closer to A$300 million.
In affidavits, the ATO alleged parts of Adgemis’ corporate network—at least 219 entities, with 66 failed or in external administration—engaged in contracts and invoices created “as part of a sham arrangement to support input tax credits claims by other entities controlled by Mr Adgemis”. It also cited another entity claiming credits “on its contended acquisitions” under a management agreement described as a “sham arrangement”. Adgemis has previously denied allegations of Goods and Services Tax fraud.
A BRI Ferrier liquidators’ report referenced investigations into “improper GST credit claims which are now subject to an ATO audit and investigation”, noting limited progress where companies failed to lodge returns, despite assurances they were “non trading entities”. The ATO also queried WLP Restructuring’s diligence, transfers of A$652,674 offshore to Italy-registered Olivetta Dreams SRL Societa Agricola, and findings that Larus Energy holdings were worthless.
Control of Public Hospitality Group has passed to KordaMentha, while McGrathNicol partners now oversee the Empire Hotel (Annandale), Hotel Diplomat (Potts Point), Claridge House (Darlinghurst), The Exchange Hotel (Balmain) and South Bondi Hotel.
“I am deeply disappointed that my broader vision for the group did not come to fruition, and that, despite sustained efforts, I was unable to deliver a better outcome for creditors,” Adgemis said on Thursday.
AFSA chief executive Tim Beresford and inspector-general Neville Matthew welcomed the court’s action, saying, “This outcome underscores the importance of proportionate and purposeful regulation, and AFSA’s commitment to protecting creditor interests and maintaining trust in the insolvency system,” adding, “The manipulation of personal insolvency proposals and creditor meetings to protect wealth is a priority area for 2025-26.”
Jonathan Jackson, 7th October 2025
