Tax Office moves to wind up Hunter Sports Group over alleged $2.7 million debt

The Australian Tax Office (ATO) has moved to wind up the Newcastle Knights and the Newcastle Jets, along with parent company the Hunter Sports Group (HSG), over unpaid debts of some $2.7 million, as owner Nathan Tinkler's ongoing financial problems increase.

The Sydney Morning Herald reported that Documents filed on Wednesday in the Federal Court in Sydney show the Deputy Commissioner of Taxation is applying for the wind-up of HSG (owing $184,258), Newcastle Jets Football Operations Pty Ltd (owing $1.063 million) and Newcastle Knights Pty Ltd (owing $1.424 million).

In response to the wind-up reports HSG issued a statement that read "the media has alerted the Hunter Sports Group that the ATO is taking action against the Newcastle Knights and the Newcastle Jets.

"We are surprised by the move by the ATO, as we have not received notification of this move.

"We advise that any outstanding sum will be paid as soon as possible - well before the reported hearing date on the matter next February."

Football Federation Australia (FFA) also issued a statement which advised that it "has been given assurances by Hunter Sports Group, owner and operator of Newcastle Jets, that the club's operations will not be affected."

The applications have been set down for hearing on 20th February.

The Sydney Morning Herald added that the ATO has moved against a number of Tinkler entities this week, continuing wind-up proceedings against Queen St Capital and on Monday became the creditor of one of his main entities Tinkler Group Holdings Administration.

NSW Government agency Venues NSW is currently pursueing action to recover debts owed by HSG relating to the Newcastle Knights' past use of Hunter Stadium.

HSG is apparently in breach of an agreement to pay almost $600,000 for the use of the Stadium.

26th November 2012 - HUNTER SPORTS GROUP IN BREACH OF 'BINDING AGREEMENT' FOR USE OF NEWCASTLE’S HUNTER STADIUM