Canterbury director charged over $800k of missing tax as liquidator forecasts $2.5m shortfall

Tuesday, 9 June 2026

Phil Clarke & Son was a painting and maintenance company based in Canterbury. (Generic image)

Inland Revenue has charged the boss of a Canterbury painting company with helping his business spend almost $800,000 of tax deductions elsewhere for more than two years.

Phil Clarke & Son was placed into voluntary liquidation owing more than $2 million on July 8 last year. The same day, owner-operator Daniel Clarke registered a new company with a similar name.

He told the liquidator a major customer’s reduced spending led the business to become uneconomical and fall behind on tax.

Last month, Clarke was charged with aiding and abetting his company to apply $793,800 of employee tax deductions to a purpose other than paying Inland Revenue.

The sum was spread across 21 offences from January 2023 to June 2025, ranging from $8000 to $66,700, according to Christchurch District Court charging documents.

The charges each carry a maximum of five years’ imprisonment, $50,000 fine, or both. Clarke, 45, is scheduled to be sentenced in September.

Phil Clarke & Son liquidator Brenton Hunt forecast a $2.45m shortfall to creditors, with $1.45m to Inland Revenue alone, and the remaining $1m to 18 unsecured creditors.

Unsecured creditors previously included ACC, Bunnings, Dulux, Hire King, Mercury, RMS Roofing, and law firm Saunders & Co.

In his second report released in February, Hunt said staff had been paid out about $92,000 and one secured creditor $16,700.

Next steps included resolving an overdue shareholder’s current account and “continued investigation into the director’s actions”.

Hunt predicted the liquidation, which had racked up $21,000 in liquidator fees, would finish within a year.

The same day Phil Clarke & Son was placed into liquidation, Clarke registered a company called Clarke & Sons, which was classified as a house painting service.

Inland Revenue charged Daniel Clark at the Christchurch District Court. (Generic image)

In March this year, another of Clarke’s companies, property development and painting contractor DRC Projects, was placed into voluntary liquidation, owing an estimated $257,000.

Clarke told Hunt that company had completed its final developments, sold its assets and closed down – but it was not enough to repay all creditors.

Just eight creditors were listed: Inland Revenue, ACC, Fleet Partners, Wasteco NZ Limited, Wattyl, RL Business Management, Bizcap NZ and Fletcher Distribution.

Neither the Clarke & Sons companies nor DRC Projects listed a phone number, email address, website nor other point of contact on the Companies Register.

Inland Revenue declined to comment ahead of Clarke’s sentencing.

The construction sector has had 780 companies liquidated in the last year, up 7% and well above other industries, according to Credit agency Centrix’s May insight report.

However, the 780 liquidations represented just 0.9% of all registered construction firms, suggesting failures remained concentrated, the report said.

Hospitality had the second highest liquidations at 414, followed by property at 347, professional services at 222, retail at 219 and transport at 157.

Liquidations had increased 17% across all sectors, but a 49% jump solely in hospitality pointed to continued strain on the industry, the report said.

Centrix chief operating officer Monika Lacey said business conditions were stabilising but “remain fragile” and the elevated construction and hospitality liquidations highlighted “persistent financial pressure”.