A former IT employee of NBN Co alleges he has been left with penalties on hundreds of thousands in tax debts after his employer failed to pay his tax bills.
Between 2016 and 2021, Abhishek Mishra worked as a senior manager in a Mumbai-based centre for government-owned broadband company NBN Co.
As first reported by the Australian Financial Review, Mishra claims NBN Co failed to make payments related to managing his income tax affairs in Australia and India, and that he could be left to foot late payment fees and penalties on the total amount of $388,419.46.
Furthermore, Mark Stanarevic, principal lawyer at Matrix Legal, told Information Age the affair may have had a major impact on Mishra’s mental health.
“Mishra's employment with NBN Co appears to have caused him serious distress, leaving him with severe anxiety and major depressive disorder,” said Stanarevic.
“This situation has not only affected Mishra but has had a ripple effect on his entire family.
“As the primary breadwinner, Mishra's inability to cope with severe anxiety and major depression has led to multiple hospitalisations, leaving him emotionally shattered.”
Mishra has taken the case to the Victorian Supreme Court, arguing that he faces possible “prosecution for the failure to lodge tax returns and pay tax in a timely manner in Australia and India”.
He alleges NBN Co breached its employment obligations to remit the taxes, and further claims Big Four accounting firm EY – which was contracted to manage the issue – did not perform its accounting work with due care.
His statement of claim alleges the firm was conflicted throughout its engagement on account of being simultaneously contracted to NBN Co – potentially muddying EY’s duty to provide Mishra advice which may have contradicted his employer's interests.
According to Stanarevic, NBN Co in collaboration with EY exerted “significant pressure” on Mishra to sign a deed related to his taxes.
“The contents of this document involved accepting the accumulated taxation amount as part of his salary in Australia for the preceding years, declaring himself as a sole trader rather than an NBNco employee, and fulfilling tax obligations as a sole trader in India,” said Stanarevic.
According to the statement of claim, Mishra claims he has been left personally liable for any interests, costs and penalties bought about by EY’s and NBN Co’s “negligence”.
It further alleges he suffered “loss and damage” as a result of NBN Co breaching contract and/or fiduciary duties.
According to the ABC, Mishra alleges a contract with NBN Co suggested he would receive help preparing his tax returns, and NBN Co would provide him with private transport, pay a fraction of his child’s school fees in India, and further contribute towards costs for long-term-housing.
The statement of claim goes on to allege that in November 2021, NBN Co blatantly refused to pay Mishra a home allowance of $1,200 to $1,500 per month as well as car/taxi allowance of $1,800 to 2,000 per month.
Furthermore, Mishra was reportedly “unable to procure a mortgage loan for himself” due to his inability to prove and/or verify his income, leading to a further loss of “the increase in value from investing in property”.
Mishra is now claiming for loss and damages.
Whistleblowing allegedly led to termination
Mishra also alleges his employment with NBN Co was terminated over a whistleblower complaint he made to the company’s senior managers.
In 2021, Mishra made a whistleblower disclosure to point out the company had failed to pay his tax liability in India and Australia.
While Mishra suggests his whistleblowing led to him being sacked, NBN Co’s court filings suggest his employment was terminated simply because his role became redundant.
As the matter awaits trial, Stanarevic told Information Age the outcome of the case could set a precedent for how whistleblowers are treated in the tech sector.
“Mishra's whistleblower disclosure and subsequent dismissal shed light on potential issues within NBN Co, emphasising the importance of corporate transparency and ethical practices within the Australian tech industry,” said Stanarevic.
“Tech-workers should be attentive as this case may prompt discussions on the broader issues of workplace ethics, corporate governance, and the protection of employees who expose wrongdoing.”
Furthermore, Stanarevic said it was “difficult to fathom” that Mishra was the only employee affected, and suggested the situation may drive other employees to step forward and share their experiences.
NBN Co admits slow payment
In spite of Mishra’s serious claims, NBN Co has kept a tight lip on the matter when questioned by the media.
When contacted for comment, a spokesperson for the company told Information Age “we don’t comment on employee matters”.
According to the ABC, the company has gone on to dispute many of the allegations, with its response to the court denying management breached employment obligations or that Mishra suffered losses as a result.
Notably, NBN Co admitted it didn’t pay the tax owed until approximately five years after Mishra began working with the company – stating roughly $388,000 was paid to India’s tax authorities between October 2021 and September 2022.
NBN’s court response further alleges this amount included payment of penalties, late filing fees and taxes on allowances.
The company went on to claim any potential late fees or penalties which were imposed would be Mishra’s fault for not having filed his personal income tax returns.
Meanwhile, Mishra told ABC News the taxes were only paid after repeatedly pressing the issue with managers and human resources, and that NBN made a payment in late 2021, but not the full amount owed.
NBN Co refused to offer comment on the apparent five-year delay in paying out the tax owed.
No trial date had been set at the time of the writing.
