Spazio boss denies IRD debt

Spazio Casa was set up here by brothers Maurizio and Paolo Cozzolino in 1995. Photo / NZME.

The boss of an Italian tile and bathroom seller has denied former companies of the group owe $5.5 million to Inland Revenue.

The IRD has filed claims against liquidated non-trading entities which previously owned the Spazio Casa group but its director Maurizio Cozzolino says most of the alleged debt was based on estimates because the companies didn't file tax returns.

As soon as the companies file the returns, Cozzolino says the bulk of amount claimed would no longer be at issue.

Cozzolino did acknowledge there was a long-standing dispute with IRD over about $1.6 million of tax, but that was the extent of the matter and it was being worked through.

He stressed the dispute did not have any impact on the trading part of the business or customers or suppliers because the new company was separate from the now-liquidated companies.

The eight liquidated companies which the IRD is claiming tax from ceased trading in 2013 after a restructure involving the sale of assets and re-finance of the Spazio Casa Group. This was when Maurizio bought out his brother Paolo, who he set up in the business with in 1995.

The business has since grown to have eight showrooms and one in Australia.

Maurizio said the group was building a new showroom in Newmarket, which would also sell high-end Italian kitchenware.