Bankrupted on tax debts totalling $551,000 following his persistent failure to meet tax obligations, Tainui Stephens could not claim any special treatment by reason of his high profile in film and television, the High Court said.
Mr Stephens said bankruptcy would not only affect his mana as a leader in Maori film and television but would also seriously affect his ability to continue work. While bankrupt he could not continue in any management role within the industry.
Inland Revenue said Mr Stephens has a long history of non-compliance: tax returns for the five years to March 2011 were filed five years late; returns for the next three years were also late. GST returns were filed late. His company Pito One Productions Ltd was wound up by Inland Revenue in 2017 for unpaid tax totalling $232,700. Liquidators recovered only $16,100. With his criticism of Inland Revenue for not sending out ‘reminders’, Mr Stephens did not see tax obligations as requiring any special urgency, Associate judge Smith said.
There was evidence of Mr Stephens and associated entities buying and selling properties at a time when he was failing to meet tax obligations. Bankruptcy will enable Insolvency Service to investigate these transaction, Inland Revenue said. In a 2016 financial disclosure to Inland Revenue, Mr Stephens disclosed an interest in two properties at Otaki.
Offers by Mr Stephens to clear his tax debts with a one-off payment of $24,000, later increased to an offer of $50,000, were turned down by Inland Revenue. Judge Smith declined Mr Stephens’ request to rule against bankruptcy. I have no confidence there will be no further tax defaults if adjudication is not made, Judge Smith said.
Inland Revenue v. Stephens – High Court (23.03.18)
18.064