Krukziener defends loan payments against IRD

Auckland's Metropolis building, built by Andrew Krukziener. Photo / Herald on Sunday

Auckland property developer Andrew Krukziener was back in court yesterday defending allegations he has not paid Inland Revenue GST on loan payments he received from a family trust.

Some of the loans are backdated as far as 1991 and relate to the Metropolis development in Auckland. Last year, Krukziener said the IRD had begun "persecuting" him over the GST on some penthouse sales in the Metropolis apartment tower.

Krukziener's lawyer Mike Lennard told the High Court at Auckland yesterday that most loans from the trust, and individuals, had been repaid, including interest payments.

The IRD case against Krukziener claims the loans he had received and repaid to his trusts should be assessed as income. But yesterday Lennard told Justice Patricia Courtney that "loans aren't regarded as income. Full stop."

Krukziener said what he had done was entirely legitimate, and that he had been victimised by the IRD.

He told the Weekend Herald that the IRD was seeking to enforce a landmark tax case against him relating to the loans he received from trusts and individuals.

He added that if he lost the case there could be consequences for many people who had organised their affairs in the same way based on the same advice he had received.

Justice Courtney reserved her decision.

In a separate case but relating to the Metropolis development, the IRD has lodged a bankruptcy application over an alleged debt of $575,000.