Judge finds payment prospect elusive
Golden Gate Supermarket & Wholesalers Ltd (Samuel & Helen Wang, also directors of Golden Gate Supermarket (Group) Ltd) was wound up by Justice Hugh Williams in the Auckland High Court on Thursday on the application of Inland Revenue, despite opposition from the company and from Commercial Factors Ltd (Terry Haydon), which wanted to keep the company alive to complete the sale of a hotel property in Tonga.
But Inland Revenue’s lawyer, Tracy Spencer, said the company had not put a proposal to Inland Revenue by 1 February, as required by Master Tomas Kennedy-Grant, hadn’t provided a statement of financial position, had put 2 subsequent proposals which were rejected immediately, and continued to mount up tax debt, starting with $90,000 of PAYE payments but now over $130,000, including fringe benefit tax, ACC employer levies & penalties.
“This is the third statutory demand that the commissioner has issued, and in each case the payments have been made in dribs & drabs so they’re not current.”
Soane Foliaki, for Golden Gate, said the company believed just over $100,000 had been misappropriated by a former manager. But he said the Tongan hotel was three-quarters built, was a valuable property, & an undertaking could be given for the NZ Inland Revenue to be paid first from the development.
Mary Tuilotolava, for Commercial Factors, said Mr Haydon would give Inland Revenue a personal undertaking to pay the IRD from the proceeds he expected to receive from a $15 million deal with a Macau party.
Mr Foliaki said the Wangs had invested $3 million in the Golden Gate business off Teed St in Newmarket in 3 years. “The stock is worth more than this debt,” he said.
Justice Williams said the assurances were unsupported by any evidence fro the company, its directors or supporters. The best that could be said for the company was that its affairs were “in some confusion.” The judge said the prospect of payment was “elusive.” Rejecting the application for a 6-week adjournment, he ordered the company wound up and appointed Steve Lawrence & Brendon Gibson (Ferrier Hodgson) as provisional liquidators.