Inland Revenue applies to liquidate radio host and businessman Nick Mills’ hospitality companies

Wellington restaurant owner Nick Mills says he will keep fighting to keep his businesses afloat. Photo / Mark Mitchell

At least two Wellington hospitality businesses face an uncertain future with Inland Revenue chasing their high-profile owner for alleged unpaid taxes.

The department has applied to the High Court at Wellington to liquidate four companies owned by Nick Mills – a long-time hospitality business owner, who also hosts a radio show on Newstalk ZB and owns the Wellington Saints basketball team.

One of the companies trades under the name Los Banditos – a Mexican restaurant – and another under the name Wellington Sports Café.

Both businesses are on Blair Street, off the capital’s main entertainment and nightlife strip, Courtenay Place.

The other two companies Inland Revenue is applying to liquidate operated as businesses that have now closed (Siglo and Boston on Blair), according to Mills’ lawyer, Mike Lennard.

A High Court judge will decide whether the companies should be liquidated following a hearing scheduled for February 4.

If liquidation occurs, liquidators’ reports should shed more light on the companies’ outstanding debts.

In a statement, Mills said he had spent the past eight months negotiating with officials at the tax department to settle “historic” issues.

“We managed to raise more than 40% of the outstanding debt as part of our negotiations, but Inland Revenue declined to accept that,” Mills said.

“We continue to meet our current tax obligations while supporting many households through our family-owned business.”

Other hospitality businesses owned by Mills include Hummingbird, Spruce Goose, Bettys, and Edison’s Superette.

“We have been in business for more than 40 years, but the last four years has been particularly challenging,” he said, pointing to the Covid-19 pandemic, high inflation, and high interest rates.

“We have fought hard to stay afloat and meet our financial obligations and will continue to fight.”

A spokesperson for Inland Revenue responded, “We are conscious of the financial pressures that individuals and business may be under and seek to work with all taxpayers who are in debt to find an acceptable way to resolve those debts, while being fair to those who have paid their taxes in full and on time.

“We will continue to approach these discussions with empathy and understanding, and with the objective of maximising revenue over time.”

Mills' lawyer described Inland Revenue tax officials as “dismissive”.

“There has been a gross breach of good faith negotiations on the part of officials, and this needs to be addressed urgently,” Lennard said.

Mills said he urged the Revenue Minister and Commissioner of Inland Revenue to “intervene” in what he described as a failed negotiation to settle outstanding tax payments.

“It has been incredibly frustrating and stressful and we know we’re not the only ones going through this distressing process,” Mills said.

Several Wellington hospitality outlets have closed their doors in recent times, including Pandoro, Myrtle, Mabel’s, Concord Bistro and Bar, Shepherd, Hiakai, and Field and Green.

Jenée Tibshraeny is the Herald’s Wellington business editor, based in the Parliamentary Press Gallery. She specialises in government and Reserve Bank policymaking, economics and banking.