Inland Revenue chasing real estate agent for unpaid tax halted

PHOTO: Inland Revenue has mishandled a tax case involving an Auckland real estate agent. Image / 123rf

According to NZHERALD Inland Revenue has been told to stop chasing a real estate agent for unpaid tax after it was found to have mishandled the case.

The courts have now put an end to criminal and civil proceedings against Auckland real estate agent Richard (Ric) Parore, after they found the IRD had breached his rights to a fair trial.

One judge described Inland Revenue’s conduct, which had essentially woven together criminal and civil proceedings, as “ill-handling”.

Parore’s lawyer David Weaver said the case centred on a “dispute over $54,000 in tax that has been in train, in one court or another, since 2018”.

At its heart was whether Parore was liable for GST during his bankruptcy. The 78-year-old agent was discharged from five years of bankruptcy in October 2014, but stayed working in real estate during that time, and afterwards.

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Parore’s tax affairs had been under audit since March 2017. Evidence following an investigation showed Parore had remained working as a real estate agent from March 2012 through to the end of March 2017. During that time, investigators found Parore had not registered for GST, had failed to pay any GST and did not file income tax returns.