Damian Griffiths, the deeply, deeply embattled founder of the previously-swiftly-expanding Doughnut Time chain, owes the ATO a cool $1 million, according to a statement from Worrells Solvency and Forensic Accountants.
Raj Khatri had been appointed as trustee of Griffiths’ bankrupt estate by the debtors. The statement notes that the ATO is Griffiths’ single biggest creditor:
The principal creditor on the Statement of Affairs is the Australian Taxation Office (ATO) in the sum of $1million, arising from a Director Penalty Notice issued in respect of unpaid PAYG and superannuation debts of the abovementioned companies.
Other creditors include several loans that were provided by family members in the vicinity of $2million. One of those parties is secured by a third mortgage over two properties in Paris, France.
In the Statement of Affairs lodged with the Australian Financial Security Authority, Griffiths says that his personal insolvency is ‘business-related’, blaming “economic conditions affecting industry, including competition, credit restrictions, fall in prices or increase in costs”.
According to Worrells, Griffiths also racked up $140,000 in credit card debt and listed a debt of $550,000 for “a payment relating to a partnership venture over the Limes Hotel“.
Doughnut Time reportedly owed around $200,000 in unpaid wages at the time that it went into liquidation.