KEY POINTS:
Ten years after taking on Inland Revenue in a campaign that became a book and then a film, Christchurch developer David Henderson has tax trouble again.
The problems are over an alleged tax debt by a company embroiled in his previous battles with the department, The Press reported.
The High Court in Christchurch has allowed Inland Revenue to pursue a Henderson company, Tannadyce Investments Ltd (TIL), for $356,686 tax for the 2002-2004 income tax years. Henderson says he owes nothing.
Tannadyce had asked the court to set aside a statutory demand for the tax on grounds it had an arguable case to dispute liability.
It said the demand should be set aside to give it time to ask the High Court to review the Inland Revenue commissioner's assessment, "including its lawfulness and fairness".
In an affidavit, Henderson said the alleged liability related to Tannadyce's dealings in the 1993-1998 tax years. He was unable to provide tax returns for those years because Inland Revenue had lost company records and resiled from agreements, and a dispute had arisen over the extent of trading losses.
Associate Judge Tony Christiansen said Henderson fell far short of showing he was entitled to seek a High Court review of the commissioner's decision. His objections could be dealt with under the procedures for disputes in a detailed legislative scheme.
"For 10 years TIL has been raising issues concerning its ongoing income tax liabilities. These issues remain unresolved despite the fact that a statutory process exists for promoting a prompt and efficient resolution of such," the judge said.
He gave Tannadyce until 4pm on October 31 to comply with the demand. Costs were awarded against Tannadyce.
Henderson fought IRD for four years after it rejected his claim for a $65,000 refund. Instead, it gave him a $1 million bill.
His book, Be Very Afraid, was published in 1999. The film, We're Here to Help, was released last year.
Henderson could not be reached for comment yesterday.
- NZPA
