Developer given tax deadline

Andrew Krukziener. File photo / Kenny Rodger

Inland Revenue is threatening to bankrupt high-flying Auckland property developer Andrew Krukziener over a $575,000 debt.

A public notice in yesterday's Herald said the IRD commissioner demanded the St Heliers developer pay up fast.

The bankruptcy alert was issued under the Insolvency Act 2006 after the High Court at Auckland gave IRD a judgment against Krukziener over money owed on June 3, the notice said.

Krukziener, whose offices were listed as level one of the Harbourview building at 152 Quay St on Auckland's waterfront, was required to pay the money within 10 days or challenge the demand.

Krukziener said from Parnell yesterday that he was exceptionally busy but very pleased with the upgrade of the stately Achilles House on the corner of Customs St and Commerce St.

The heritage building has had a foyer makeover and office floors are gradually being renovated, upgraded and leased.

A large banner sign encourages prospective tenants to contact Krukziener directly about leasing space in the building.

Asked about the IRD problems, Krukziener said: "It's a bit of a long story." He would not say if he would challenge the bankruptcy notice.

IRD this year chased him for a $700,000 tax debt owed by his company AK Oriental (in liquidation). In February he applied to have that action struck out.

At the same time, Hanover Finance claimed he owed $6.9 million and he was being charged 18 per cent monthly compounding interest.

Hanover was also trying to bankrupt Krukziener over a loan it granted in 2002 of $4.15 million.

On February 17, Justice Patricia Courtney ruled that he had to pay 18 per cent interest from March 27, 2006 until the money was repaid.

Last year he told the media IRD had began persecuting him as a result of unpaid GST on some penthouse sales in the Metropolis apartment tower he developed in central Auckland.

The IRD case against Krukziener said that loans he had received and repaid to his trusts were income and should be assessed as such.

Krukziener said last year that what he had done was entirely legitimate. He said had been victimised by the IRD. The department wanted to use him to make a landmark case that would enable them to attack a number of other real estate developers and property investors, he claimed.