Paul Webb owes Inland Revenue $26.3 million in tax arrears. Companies office records give as his residential address valuable real estate on Arney Road in the Auckland suburb of Remuera. Chasing down assets is proving complicated. Arney Road has a current rating valuation of $6.4 million, but the property is owned by Yogi Trustee Ltd a company which no longer exists; it has been struck off the companies register.
First step: Inland Revenue asked the High Court to reinstate Yogi Trustee Ltd to the register. Inland Revenue interest in Mr Webb and his Honk group of companies stretches back more than ten years. In 2013, Inland Revenue obtained a High Court freezing order over Yogi Trustee’s assets. By the time of a November 2018 District Court order that Mr Webb pay $26.3 million in tax arrears, Yogi Trustee no longer existed. It had been struck off by the companies office; an administrative action for failure to file annual returns.
Companies Act rules specify that when a company owning land is removed from the register, title to the land reverts to the state. This did not help Inland Revenue in its tax recoveries against Mr Webb; government practice is to hold this land as neutral stakeholder until a claimant comes forward.
The High Court ordered Yogi Trustees Ltd be restored to the companies register since Inland Revenue has ‘an undischarged claim against the company.’ Inland Revenue alleges Mr Webb is the ‘true owner’ of Arney Road and that title held in the name of Yogi Trustee Ltd is a front to disguise his ownership.
re Yogi Trustee Ltd – High Court (13.09.19)
19.168