David Richards’ 4Square Media settles ATO dispute following court action
4Square Media, publisher of SmartHouse Magazine, Sound Mag, Channel News and Click Magazine, has reportedly settled with the Australian Taxation Office (ATO) after proceedings were launched to wind the company up.
The company, founded by controversial journalist Dave Richards, was scheduled to appear in the Sydney Federal Court on March 28 after the ATO filed an application in February for 4Square to be shut down.
Richards: “I have a long history of breaking big stories”
“We had an issue with the ATO over an issue re super,” Richards told Mumbrella.
“The issue is resolved and the application will be removed on the 28th of March
“4Square Media has no debt, operates from cashflow and last year delivered a profit of over $200,000. The issue with the ATO was over the level of super payment and 4SQM having to pay freelancers.
“An application is being made by solicitors acting for the ATO to withdraw their application. 4Square Media settled the dispute with the ATO via a payment out of cash reserves.
“The issue related to superannuation payments to contracted writers and freelancers who we considered we did not have a liability for.”
Richards founded 4Square in 2002 following a successful career as an investigative journalist in the 1980s and ’90s, after which he founded a PR agency.
Since establishing 4Square, Richards has been a divisive figure in the Australian consumer electronics media. Most notably, he has been accused of plagiarism by the ABC’s Media Watch three times over the past decade.
Two years later, Media Watch revisited 4Square and Smarthouse News after complaints from rival tech publisher IDG about reused content. In 2017, Richards was accused of taking stories from various international outlets covering the Las Vegas Consumer Electronics Show.
The ATO refused to comment on the matter, telling Mumbrella: “We cannot comment on any affairs of taxpayers due to our obligations of confidentiality under the law. Additionally, we do not comment on matters before the courts.”
