A judge had some unflattering words to say about Inland Revenue yesterday as the department tried to liquidate a West Coast company.
During a civil hearing in the High Court at Greymouth, Justice Anthony Christiansen described the IRD as "lurking in the background like a shark waiting to consume failing
companies".
The comments arose following an attempt by the department to liquidate possum skin company Gray Fur Trading. It said the company owed almost $200,000 in overdue income tax and GST, but the court was told the facts revealed that almost half that amount was added on in costs and penalty payments.
The initial debt was closer to $90,000 but ballooned from 2003, when the company was first advised it was in trouble, and again in October 2004 when the IRD answered correspondence sent in reply to its demands the previous year.
Gray Fur Trading lawyer Bev Connors said a crash in the international fur market had hurt the company and Justice Christiansen agreed, saying the crash had hurt a lot of businesses.
It was then the judge compared IRD with lurking sharks.
Justice Christiansen reserved judgment on the matter to give the fur company the chance to enter a payment plan which would include the immediate sum of $53,000.
- NZPA
