Stuart Nash dismissed from cabinet, the big chill hits the country and how much time we’re wasting waiting on customer service in the latest New Zealand Herald headlines. Video / NZ Herald
Inland Revenue has put a South Island cafe into liquidation in the High Court at Timaru after the business failed to pay tax and its Covid-related WorkSafe fines.
PwC insolvency practitioners Wendy Somerville and Malcolm Hollis were appointed liquidators of Geraldine’s 5Fifty5, which trades as Q Foods, citing “poortax management resulting in unpaid taxes” as the catalyst for IRD to take action.
They confirmed the company had been sold for $30,000 in October and were investigating how those funds were used.
The liquidators said two unsecured creditors were owed about $144,000 but only named the Ministry of Justice.
Inland Revenue, as preferential creditor, is claiming $169,164.17 for outstanding GST, PAYE and other employee deductions while the Ministry of Justice wants money for breaches in health and safety rules for Covid-19 regulations.
5Fifty5 had received $176,487.20 in wage subsidies from Te Hiranga Tangata Work and Income since the start of the Covid-19 pandemic, according to the MSD search engine.
The company initially got $91,296 for 15 employees, then an extension of $40,000 for nine staff, a further $37,642 in August 2021 for eight employees as well as a fourth payment made just before that, in March 2021 of $7200 for seven staff.
Q Foods was hit with $20,000 in WorkSafe infringement notices after flouting Covid-19 restrictions. Photo / RNZ
The Otago Daily Times reported the business faced a $12,000 fine for failing to comply with vaccination requirements, $4000 for failing to display a Covid QR code and $4000 for failing to display whether the premises is operating under Covid-19 vaccination certificate rules.
Nicolson came under fire at the time for comparing the Government’s Covid policies to the Holocaust in his store signs.
The fines were issued in late February last year, but were not paid within 28 days as required.
Aside from the IRD, those claiming money from Q Foods are suppliers Tegel Foods, Kaans Catering, Coca-Cola Amatil (NZ), Bidfood and Silver Chef Rentals.
The liquidators said no money was owed to employees as the company had none at the time of liquidation.
The company also had no assets on the date of liquidation.
IRD’s annual report this year said the department liquidated 759 companies out of 1292 companies that went into liquidation across Aotearoa.
5Fifty5 was one of 163 companies liquidated by IRD in the High Court in the last year.
Inland Revenue’s report said, “Liquidating any business is a step of last resort, but an action we take to protect the integrity of the tax system and to ensure there’s a level playing field for other businesses that are meeting their tax obligations.”
The tax department said companies trading insolvently “undermine the whole trading community because they have an unfair advantage over other companies by not paying tax”.
