Nick Mills ‘devastated’ after talks over $1m tax bill break down

Monday, 27 January 2025

High-profile publican and talkback radio host Nick Mills faces losing his businesses after talks with the Inland Revenue over unpaid tax broke down.

The radio host is “devastated” and heavily critical of IRD’s “unreasonable” approach to negotiations.

Mills owns a group of businesses operating popular Wellington venues. But The Post revealed in 2023 that he owed close to $1 million in income and goods and services tax (GST).

For eight months, Mills has been negotiating with the IRD.

But in a media statement, released on Monday, he said “officials have completely moved the goal posts”.

“We managed to raise more than 40% of the outstanding debt as part of our negotiations, but the IRD declined to accept that.

“It has been incredibly frustrating and stressful, and we know we’re not the only ones going through this distressing process.

“We continue to meet our current tax obligations while supporting many households through our family-owned business.”

In 2023 the Government’s tax collector served papers on Mills, saying it believed five of his companies owed $979,855.56 in GST, income tax and “employer activities” (the amounts deducted from wages such as PAYE or KiwiSaver).

That related 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 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 his venues had been “slammed” during Covid-19 restrictions.

This was followed by soaring interest rates and a general economic downturn in the city centre.

Mills also blamed “unfavourable decisions to operating hours in our late-night venues which had a severe impact on trade”.

He added: “We have been in business for more than 40 years, but the last four years has been particularly challenging. We have fought hard to stay afloat and meet our financial obligations and will continue to fight.”

A spokesperson for IRD said the secrecy rules of the Tax Administration Act limit what they can say in response.

“At this stage all we can say is that Inland Revenue is conscious of the financial pressures that individuals and business may be under and seek to work with all taxpayers who are in debt to find an acceptable way to resolve those debts, while being fair to those who have paid their taxes in full and on time,” she said.

“We will continue to approach these types of discussions with empathy and understanding, and with the objective of maximising revenue over time.”

Mills’ lawyer Mike Lennard, a former director of litigation at IRD, said the “dismissive attitude” of tax officials was not something he’d seen before in three decades working in the sector.

“There has been a gross breach of good faith negotiations on the part of officials, and this needs to be addressed urgently,” he said.

Lennard said officials had agreed to a plan where Mills would pay back assets over time, as well as partially waiving late fees and interest.

But officials also wanted to use an apartment as security. This wasn’t possible because the property is held in trust.

Lennard said: “Alternative security was offered, Inland Revenue said that wasn’t enough. The amount was upped.

“And then Inland Revenue said, ‘no deal.’ From my perspective, the matter was, in principle, agreed on both sides, and Inland Revenue reneged on that.”

Figures from the Ministry of Business, Innovation and Employment (MBIE) revealed more New Zealand companies went bust in the final quarter of 2024 than any three-month period since the global financial crisis.

That was marked by a shift in IRD’s approach. Having eased off debt work through the pandemic, the agency has ramped up enforcement.

“I'm seeing in this and with other clients,” Lennard said. “Frankly, the willingness to work with people in financial difficulties and help them through has largely disappeared.

“I think it's definitely a result of the government instructions to take that collection action no matter what. And, I don't know whether that was the intention of the Government, but it's having a dreadful effect on small businesses.

“There's dozens of people whose jobs are going and Wellington hospo obviously is taking a hammering anyway, so this is not going to help.”

Lennard said Mills was “a strong, resilient character, but he's devastated.

“It is just heartbreaking for me as a lawyer to deal with somebody who has been trying, in good faith, to resurrect and to keep these companies going, and to be knocked back in the way that he's been knocked back.

“It's heartbreaking, but it also seems just dumb.”