ATO tax debts emerge as new arc in StrongRoom AI saga
A key witness in legal proceedings over the collapse of medtech startup StrongRoom AI repeatedly invoked privilege in court as ATO tax debts and urgent messages were discussed.
"Hey mate, we really need to pay this. Don't think MBA has the funds."
That message from former StrongRoom AI director and Member Benefits Australia (MBA) founder Divesh Sanghvi to StrongRoom's co-founder Max Mito was among evidence discussed in the Supreme Court on Monday, as liquidators HLB Mann Judd kicked off their public examination into the collapse of the medtech startup.
The exchange was sent in late 2024, after Sanghvi and his father had both received Director Penalty Notices from the Australian Taxation Office for unpaid company tax, but before StrongRoom AI had closed its acquisition of MBA for $8.8 million. "Dad's stressing, so please, let's make sure," Sanghvi wrote in a follow-up message, according to evidence read in court.
The father and son appeared before the court this week facing questions from counsel for the liquidators about their knowledge of StrongRoom's finances and the flow of payments connected to the acquisition.
