Running With Thieves: ATO suing boss Scott Douglas over tax unpaid bill of almost $1 million

The Australian Tax Office is chasing the boss of embattled South Fremantle brewery Running With Thieves for almost $1 million. The tax office is suing Scott Douglas over tax allegedly not paid by Running With Thieves’ operating company Atari Enterprises and over allegedly unpaid private tax bills. The Supreme Court legal action was launched on August 25, three days after administrators took charge of Atari Enterprises. The tax office claims Mr Douglas is responsible for more than $381,000 that allegedly remains unpaid by Atari. The company failed to pay $424,785 in business-related tax from December 1, 2021 to the end of January this year. Atari has since coughed up $43,665.61. The ATO also alleges Mr Douglas also failed to pay income tax for five non-consecutive financial years starting in 2010. “The defendant is indebted to the Commonwealth of Australia in the sum of $567,519.34 in respect of income tax and additional charges for late payment,” according to the writ. The total amount allegedly due and unpaid is an eye-watering $948,638.73, plus interest and costs. Insolvency accountants from Hall Chadwick now control Atari. But speaking to craft beer and brewing website The Crafty Pint, Mr Douglas said Running With Thieves is trading as normal and have retained all staff at their sprawling Marine Terrace venue. He said the decision to appoint an administrator is the result of the difficult trading conditions since their inception three years ago. “To survive through that, we had to take on a fair bit of debt and now we’ve been trying to work out arrangements with various creditors,” said Mr Douglas, who was previously involved with Margaret River’s Black Brewing. “The company is trading strong,” he added. “It’s growing 30 per cent year on year, but it’s really just that debt that was incurred to survive through COVID with the new business.” Running With Thieves launched as a lifestyle and apparel brand in 2013 before producing beers and spirits in a former Sealanes warehouse in South Fremantle. Two years ago, Atari received $703,000 from the State Government’s Value Add Investment Grants program — part of a total $10.2m awarded to 18 food and beverage manufacturing companies in WA.