Chch restaurant in debt to I.R.D.
Christchurch’s ShangriLa Restaurant now owes the Inland Revenue Department more than $231,000, the District Court was told yesterday.
Mr Chris McVeigh, for the department, gave the figure when a shareholder in the restaurant, Andrew Poh Sim, appeared for sentence on 13 admitted charges of failing to account monthly for P.A.Y.E. deductions from employees’ wages. Sim, who appeared without legal representation, had also admitted the charges on behalf of the restaurant.
The pleas were entered on July 10, when Mr McVeigh said total P.A.Y.E. arrears to May 25 stood at $98,004.02 and the total outstanding to the department for all revenues was $186,261.93. Mr McVeigh said yesterday there would be a
sale of the restaurant by a mortgagee to an overseas buyer. “The solicitors have written a letter outlining a proposal whereby a substantial proportion of the tax is to be paid out of proceeds of the sale.” Such an arrengement was suitable to the department, he said.
The proposed sale is to go ahead in November. Mr McVeigh said total arrears to the department now stood at just over, $231,000, of which just under $115,000 was outstanding P.A.Y.E.
The balance of the arrears was outstanding GST and Accident Compensation Corporation levies.
Mr McVeigh said the department would receive $150,000 from the sale of the restaurant; the balance to be paid off after that.
“The department is pre-
pared to accept that. The alternative would have been to wind up the company.
“It was agreed that would achieve nothing in terms of the repayment of any arrears.” Sim told Judge Keen that he would be able to pay a fine when the sale of the building goes through. “I will have cash available to myself.” Judge Keen adjourned sentencing to November 6 and suggested Sim get legal representation to clarify the defendant’s financial situation to the court.
“It seems a bit odd to me that the department is prepared to accept something less than is accruing to them if you are going to walk away with cash out of this.
“It might be in your interests to consider having a solicitor here next time you appear.”
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Press, 22 August 1989, Page 12
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361Chch restaurant in debt to I.R.D. Press, 22 August 1989, Page 12
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