Inland Revenue dismissed as forgeries contractors’ invoices supplied by Surasak Pootinun to support his GST claim when bankrupting him on tax debts totalling $2.4 million.
Pootinun provided labour for crop harvesting; primarily individuals working on short-term restricted work visas. In May 2018, Inland Revenue issued assessments for GST and withholding payments due for 2015 and 2016 tax years. Tax law required Mr Pootinun to deduct withholding tax from payments to hired labour. He did not respond to Inland Revenue assessments. He offered no defence when Inland Revenue sued to recover the assessed tax debt. As at September 2020, Mr Pootinun was liable for tax debts totalling $2.4 million (including interest and penalties) of which some $527,100 was GST.
Inland Revenue applied to bankrupt Mr Pootinun. He complained. Having paid GST on contractor invoices, he should be allowed a GST credit, Mr Pootinun said. The High Court was told Inland Revenue dismissed the contractor invoices as forgeries; handwriting analysis suggested they were all prepared by the same person. Individuals who supposedly provided the invoices are no longer in New Zealand.
Mr Pootinun asked the High Court to dismiss Inland Revenue’s bankruptcy application, giving him time to challenge its treatment of GST.
Mr Pootinun was too late to challenge the 2018 disputed tax assessment, Associate judge Lester ruled. Bankruptcy was ordered. Even if Mr Pootinun’s GST claim were to be successful, he would still be insolvent given the size of his remaining tax debts, Judge Lester said.
Inland Revenue v. Surasak Pootinun – High Court (8.10.20)
20.165