Allied Farmers says one of its subsidiaries has received a demand from the Inland Revenue to pay back $3.7 million.
Allied Farmers Rural has 15 days to pay back the money or reach a compromise with the tax man otherwise the Inland revenue can commence liquidation proceedings.
It is the second loan demand the company has received this month.
On February 11 Allied received a demand from a lender to pay back $500,000 plus interest. The deadline for that loan to be paid is Friday.
Both demands are enforceable events of default under Allied's secured loan facility with Crown Asset Management - a company set up by the Government to manage the assets of five failed finance companies which were bailed out under its retail deposit guarantee scheme.
