IRD chasing McCarten's Unite union over taxes

Matt McCarten. Photo / Chris Loufte

Inland Revenue is chasing unionist Matt McCarten's Unite Support Services Ltd. for $150,750 in unpaid taxes after the department forced the company into liquidation last month.

McCarten's vehicle, which supplied administrative support services to the youth-orientated union Unite Inc., was put into liquidation by a High Court order last month after the tax department pursued it for "failure to provide for taxation," according to the first liquidator's report.

The Official Assignee rated the prospect of a dividend as "unlikely," and is looking into the company's possible interest in an Onehunga building lease, the report said.

The liquidator will contact McCarten to verify Unite Support Services' interest in the building, which may have outstanding arrears owed on the lease.

IRD is seeking almost $4,000 costs, $97,000 in a preferential claim and a further $49,800 as an unsecured creditor with proof of debt.

The Unite union assigned an interest in a lease and the provision of educational activities to McCarten's company, according to its 2009 financial statements, the latest lodged with the Companies Office. The union has the right to take action against McCarten's company if there's a default of the lease agreement.

The union fell afoul of the IRD after failing to pay tax on revenue accrued between October 2007 and March 2009. After racking up $134,000 in unpaid tax, it agreed to repay that at a rate of $8,000 a month.

The company reported a net deficit of $33,700 in the 2009 year and made a loss of $15,500 the year before.

Unite union recognised Unite Support Services as a related party, but didn't pay any charges for its services in the 2009 year.

Former Alliance Party President McCarten, who has been recently linked to Hone Harawira's Mana Party, is the sole director and shareholder of Unite Support Services.