Former Virtical director blocked from leaving Australia amid $120m GST probe
A former director of the collapsed hospitality roll-up Virtical has revealed he’s effectively grounded, after the Tax Office issued a Departure Prevention Order stopping him from leaving Australia.
Mark Toma asked the Federal Court to review the ATO order, with the filing bringing the travel restrictions into the open as the tax office continues probing what it alleges is a massive GST refund scheme.
The ATO has been investigating $120 million in GST refunds linked to construction work it says may never have occurred. Virtical is alleged to owe the tax office $245 million once penalties, other debts and interest are included — a figure that, if established, would eclipse any GST fraud previously alleged in Australia.
Under the GST system, businesses can claim back GST paid on expenses when outgoings exceed income for a period, but invoices and receipts are typically demanded only if the claim is later audited.
Investigators say the refund claims were supported by invoices from Top Class Constructions, where Toma was a director from 2017 to 2023.
Liquidators from BRI Ferrier launched Federal Court proceedings in June against Toma and another former Virtical director, John Palasty, alleging the pair orchestrated a “dishonest and fraudulent” scheme that hit taxpayers.
Whether Palasty faces the same travel ban isn’t clear. If he does, he has not applied to challenge it.
Virtical made waves in 2023, snapping up well-known pubs and hotels including Sydney’s Republic and Melbourne’s Adelphi during a $125 million acquisition sprint over 4 months. In 2024, the Australian Financial Review reported Virtical, Toma and Palasty were under ATO investigation. Not long after, Virtical unravelled when a lender owed $90 million pushed associated companies into liquidation.
When questioned in court by liquidators about the collapse, Toma and Palasty blamed each other for GST claims tied to $1.2 billion in construction work the ATO says did not happen.
Toma repeatedly answered “I don’t remember” to questions, including queries about his role at Top Class Constructions and even basic personal history. He alleged, however, that Palasty had created Top Class Constructions’ invoices and directed a tax agent to lodge the GST refund claims.
Palasty — described as a twice-bankrupt developer — replaced Toma as a Virtical director in November 2023 after working inside the group as development manager and senior adviser.
After his exit from Virtical, Toma focused on short-term lender Bond Global Capital. At the time, the firm’s website claimed he had made $45 million selling his Virtical shares, calling it “further solidifying his reputation as a financial luminary”.
The same material also said: “Mark’s astute investments have left an indelible mark on the real estate landscape,” and pointed to his “remarkable achievements continue to inspire and set a standard of excellence for the industry”.
Under oath last year, Toma said that $45 million figure was negotiated down to $25 million and he ultimately received between $9 million and $10 million.
Palasty was discharged from his second bankruptcy in early 2023. During the company’s collapse in September 2024, he resigned and offloaded stakes in many failed group entities to a 27-year-old from Mount Hunter, about 70 kilometres south-west of Sydney.
Liquidators allege both men were Virtical directors and say that even after Toma quit in late 2023, he remained the “true controller” of the business.
Jonathan Jackson, 27th January 2026
