The ghost of John George Russell is returning to haunt Inland Revenue. Control of the Russell companies has passed to Kawakawa Bay resident Glenda Rogers who now has High Court approval bringing five companies back from the dead to make belated claims for GST refunds.
The late Mr Russell spent more than thirty years pursuing tax claims against Inland Revenue over use of tax-loss companies, mostly without success. At the time of his death, Mr Russell had an on-going tax dispute with Inland Revenue concerning a company called FB Duvall Ltd. The High Court had ruled Duvall’s late objection to a GST assessment should be considered. This GST assessment is still not resolved after seven years negotiations with Inland Revenue.
The High Court was told Ms Rogers identified five defunct companies in the former Russell empire with potentially similar GST claims. They are no longer on the register, having been removed or struck off between seven and 22 years ago. She asked the High Court to exercise its Companies Act discretion to reinstate these companies, bringing them back to life and opening up the possibility of further late GST objections. Inland Revenue is against reinstatement. The companies have been dead and buried a long time. Three of them had unpaid taxes, it said.
Associate judge Johnston gave approval. There is no time limitation on reinstatement. Restoration to the register for the purpose of pursuing a speculative tax claim is not grounds for refusal, he said.
Commercial Management Ltd v. Inland Revenue – High Court (28.08.18)
18.172