Northland
contractor Timothy Vivian Meredith was bankrupted by Inland Revenue on unpaid
taxes and penalties of $1.03 million in what is a double bankruptcy. He was bankrupted whilst currently
bankrupt.
The High Court was told Mr Meredith was
bankrupted in April 2008. He did not
co-operate with the Insolvency Service, never providing a statement of his
financial position. The three year
period for automatic discharge from bankruptcy does not start running until a
statement is provided. Whilst bankrupt,
he carried on business activities in breach of the Insolvency Act.
Inland Revenue said Mr Meredith had
failed to pay any GST or income tax on his business activities for up to six
years since the April 2008 bankruptcy.
Associate judge Bell ordered Mr Meredith be bankrupted again. Mr Meredith told the court he did not have
assets sufficient to pay a $1.03 million tax debt. He purported to clear the $1.03 million tax
debt by what he called a bill of exchange drawn on his own IRD tax account. There were no funds in the Inland Revenue
account; in fact he owed Inland Revenue.
Judge Bell said the supposed bill of exchange was no more than a
worthless promissory note.
Inland
Revenue v. Meredith –High Court (2.12.15)
16.016