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Old 23-08-2017, 11:25 AM
glend (Glen)
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glend is offline
 
Join Date: Jun 2013
Location: Lake Macquarie
Posts: 7,121
I suggest the Police have people that can do that, and it sound like a crime may have been committed. Unfortunately, in Partnerships it is often, he said, she said, and blame is not easily resolved legally. I have a nephew who went into a partnership with a cousin, the cousin nearly destroyed the business through personal expenses charged to a company credit card. In the end, the nephew was forced to 'buy out' the cousin. Sadly many people go into Partnerships not realising that all your personal assets are at risk, and you can be responsible for the other partners spending. The only safe business structure is a Pty Ltd company, where your assets are outside the company so to speak. It won't prevent another owner from taking money from the company but your liability is limited within the company.

Your sister would be wise to advise the ATO asap, as they can grant extensions on GST and tax payments if the situation is explained. She should hire a lawyer experienced in Partnership disputes. The other partners assets will be at risk in this. She needs to document everything.
This is an excellent example as to why small businesses should back up hard drives, computers, etc and store the backups remotely. If she uses a Cloud based storage of some kind, that can be recovered. Intentionally destroying business information in the way you describe is probably illegal as ASIC and the ATO require all businesses to maintain seven years worth of financial records. Ask the police for advice.
Good luck
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