Legal high firm chased for $850,000 tax

NZ Herald

20 May, 2015 11:20 PM2 mins to read

Matt Bowden, Founder of Stargate operations. Photo / Greg Bowker

Legal high godfather Matt Bowden's company is being chased by Inland Revenue for $850,000.

Bowden put Stargate Operations, a firm he directs and is a shareholder of, into liquidation last week.

Bowden, who makes rock music under the stage name Starboy, told 3News last Friday that he couldn't afford to pay his bills and was locked out of his lab where he made synthetic cannabis.

Bowden is credited with introducing party pills to New Zealand and later moved into importing and manufacturing synthetic cannabis.

A report from liquidators, Derek Ah Sam and Paul Vlasic, says Inland Revenue is claiming $846,000 from Stargate Operations for income tax.

"It is understood this figure would have been higher if additional income tax returns had been filed," the report said.

Trade creditors could be owed almost $700,000, though the liquidators say they cannot verify the accuracy of this amount, which was taken from the company's Xero accounting software.

The report lists high-profile law firm Chen Palmer, ESR, Nelson science lab Cawthorn Institute, and Matamata's Hobbiton Movie Tours as creditors.

French drug services company Cerep is also listed as a creditor.

The liquidators are still investigating what assets the company has but say they are confident they can collect $1724 apparently due from debtors.

The report says liquidators are aware of disputes with employees holiday pay and wages, which will now be worked through.