Lifestyle launch on despite ATO notice

Lifestyle Investment Property this month launched a new investment scheme despite being subject to a winding up notice from the Australian Tax Office.

Lifestyle director Jon McKenney toldMoney Managementlast Thursday the outstanding monies would be paid to the tax office the next day.

The new investment scheme, The Residential Property Investors Club, was launched earlier this month with Warren Gibson, founder of Financial Media Systems, acting as general manager.

Last week, Gibson said he had no knowledge of the winding up order until questioned byMoney Management.

The ATO sought the winding up notice on March 16 against Lifestyle Investment Property, a residential property developer. Lifestyle is disputing the amount with the tax office.

"My legal advice is to pay the amount being claimed (by the tax office) despite the sum being in dispute," McKenney says. "We will seek to reclaim it later."

Lifestyle is the sole shareholder in The Residential Property Investors Club which was formed in September last year. Gibson says the launch of the club and initial operations will be funded by Lifestyle.

The aim of the club is to provide residential property investors with a range of discounted services such as tax returns, insurance and bank loans.

Gibson says it will also offer discounts on property investments.

McKenney says Lifestyle will use the club to sell some of its own townhouse and unit developments. Annual fees for the club range from $100 to $500 with financial planners being given free membership.