Michael Yorke’s attempts to claim tax debts were not his but those of a relative with the same name failed when he was bankrupted by Inland Revenue.
Michael Philip Graeme Yorke (born in 1958) shares the same name as his son (born in 1980). Mr Yorke senior previously lived at Haruru in Northland. When sued by Inland Revenue for unpaid income tax and arrears in student loan repayments Mr Yorke senior did nothing. Armed with a default judgment for $46,400, Inland Revenue took steps to bankrupt him. Mr Yorke then turned up in court, claiming the debt was not his. The court file named him as operating an internet website service when he had never run any such business; he had been a truck driver and was now on ACC. He alleged the debt was owed by ‘his nephew’ having the same name and who now lived in Australia. Further evidence at a later court hearing identified that the ‘other’ Mr Yorke with the same name was in fact his son and that the claimed tax debt was owed by Mr Yorke senior. Mr Yorke senior’s signature on court documents matched the signature on a student loan application he alleged belonged to ‘his nephew’. He was bankrupted on both the unpaid student loan and the income tax arrears.
Associate judge Bell explained to Mr Yorke the effect of his bankruptcy is to wipe his tax debts. As an ACC beneficiary, he did not have sufficient income to avoid bankruptcy through instalment payments with a summary instalment order.
Inland Revenue v. Yorke – High Court (15.10.18)
18.201