High-profile bar owner and talk radio host owes close to $1m in tax
Wednesday, 3 May 2023
Inland Revenue is chasing high-profile publican and talkback radio host Nick Mills for unpaid income and goods and services tax (GST) totalling close to $1m.
But Mills is confident of repaying the debt and insists no staff will lose their jobs.
The Newstalk ZB host owns a group of businesses operating popular Wellington venues, including Bettys, Hummingbird, Boston on Blair nightclub, Edison's Superette and Spruce Goose.
The hospitality sector has struggled through the Covid 19 pandemic, staff and skills shortages and now a cost of living crisis.
“We want to resolve it, and we are going to resolve it,” Mills said. “It’s obviously disappointing that it's got to that.
“It's just been a horrific time in hospitality.”
IRD served a statutory demand on Mills’ Blair St office on Friday. It was briefly pinned to the door before being removed.
The six pages detail how the Government’s tax collector believes five of his companies owe $979, 855.56 in GST, income tax, and “employer activities” (the amounts deducted from wages such as PAYE or KiwiSaver).
They relate to four premises: Spruce Goose, Boston on Blair, Siglo and Bettys.
Mills is also a director and shareholder in three other companies and hosts a three-hour weekday morning show on Newstalk ZB in the capital.
He also owns the Wellington Saints basketball team and a decade ago was awarded the New Zealand Order of Merit for services to the sport.
Mills said the statutory demand, delivered by a debt collection agency on behalf of IRD, came “out of left field.” But the agency had been reasonable.
“We're trying to find our way out of it and that’s what we are we going to do?”
He wanted to offer reassurance to staff about their jobs. “There is no issue … they will know that. I have never been a minute late with anything. There’s no concern for any staff losses.”
Statutory demands enable creditors to enforce overdue payment from indebted companies. The debtor company’s failure to comply – usually within 15 days – could result in the liquidation of the debtor company.
IRD doesn’t comment on investigations, audits or other compliance measures against individual taxpayers.
“A statutory demand is the first step in legal proceedings to wind up an insolvent company,” a spokesperson said. “It is essentially a test to see whether a company can pay its debts when they fall due.
“Inland Revenue only uses a statutory demand where the amount owing is material and previous attempts to obtain or negotiate payment has been unsuccessful, or where a negotiated payment has further defaulted.”
Mills is also facing other legal woes. He, his son Jordan, and Boston on Blair are being prosecuted following a Department of Internal Affairs investigation after an assault on three people by a bouncer.
Pavali Logovae was filmed allegedly stomping on the head of a man before pushing a patio heater on top of him, injuring two others.
They are being prosecuted for offences relating to being unlicensed under the Private Security Personnel and Private Investigators Act 2010.
A judge alone trial is set for later this month at the Wellington District Court.
Correction: This story suggested The Tasting Room is owned by Nick Mills. It was sold in 2019.