Dodgy alcohol wholesaler Fernbrew collapses as ATO closes in

A liquor wholesaler accused of selling fake spirits has collapsed with reports it owes more than $87 million in tax.

Fernbrew, which lists liquor merchant Rex D'Aquino as its sole director, had revenue of $66 million in 2017. However, it is accused of selling counterfeit liquor. Fernbrew claims to import Blue Cactus Tequila, which authorities say isn't authentic.

A product can only be called tequila if it is made in Mexico. However, Mexican authorities say that product uses a fake Mexican distillery address and a false watermark. In an investigation by the ABC, its barcode was traced to a Canadian company which specialises in swimwear.

Another of D'Aquino companies, D'Aquino Bros Pty Ltd, is fighting a lawsuit brought by the Scotch Whisky Association (SWA).

Five days after it was placed in voluntary administration, Fernbrew acquired alcohol production company Hunter Wine Services (HWS), which has faced fines for underfilling wine casks and discharging toxic waste into stormwater drains near its headquarters in regional NSW.

The ATO sent a letter Fernbrew's clients which claimed Fernbrew had a large tax debt and said outstanding invoices should be paid directly to the Federal Government.

More than 50 creditors, including Westpac and National Australia Bank, have been invited to a meeting on Monday called by administrators Hall Chadwick.

Sheridan Randall, 13^th February 2019