SPCS

SOCIETY FOR PROMOTION OF COMMUNITY STANDARDS INC.

David Henderson to serve community detention for PAYE tax offences

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Failed property developer Dave Henderson’s last battle with Inland Revenue has landed him a sentence of community detention and community service.

Henderson appeared before Judge Gary McAskill in the Christchurch District Court on Thursday for sentencing on seven charges of aiding and abetting his company Dweller Ltd to apply tax deductions or deemed tax deductions for purposes other than payment to the Commissioner of Inland Revenue.

The charges were first laid about four years ago and involved about $163,000.

[ Read Earlier story: Bankrupt Henderson guilty on tax charges published 17/0915

http://www.stuff.co.nz/business/better-business/72386302/Bankrupt-Henderson-guilty-on-tax-charges ]

Henderson was found guilty in September after a judge-alone trial that took place over short periods spanning nearly a year.

Judge McAskill sentenced Henderson to 200 hours’ community service and four months’ community detention, meaning he must stay in his apartment at Christchurch’s Heritage Hotel building between 7pm and 7am.

Henderson was also ordered to pay $143,633 reparation. [Read more…]

Inland Revenue takes David Henderson to court

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The Inland Revenue Department took about four hours to present its case against 58-year-old [Christchurch property developer] David Ian Henderson on seven charges alleging that he misapplied deductions taken from employees for payment of their PAYE income tax, and used it to pay other creditors of his company Dweller Ltd.

The charges allege that Henderson aided and abetted Dweller Ltd knowingly to apply PAYE deductions from the 13 employees “for purposes other than payment to the Commissioner of Inland Revenue by the due date”.

The IRD accuses Henderson of using employees’ PAYE tax deductions to settle accounts with other creditors in 2010. He denies all charges.

A schedule of deductions is filed to Inland Revenue at the end of each month, and payment is then required by the 20th of the following month. The charges relate to each month from May to November, 2010.

The total amount of money referred to in the charges is $162,946.

Henderson was the director in charge of running the Property Ventures Ltd property business which was placed into receivership in March 2010. He then agreed to take the 13 employees into a new entity, Dweller Ltd. He was the managing director of Dweller.

Former ACT MP Rodney Hide, of Auckland, was sitting in the public gallery most of the trial.

For full story dated 10/11/14 by David Clarkson see: 

http://www.stuff.co.nz/business/industries/63059650/Inland-Revenue-takes-David-Henderson-to-court [Read more…]

David Ian Henderson: Probe into collapse of Hendo’s failed Property Ventures Ltd

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Property Ventures Ltd (PVL) was a development and investment company founded by Dolf de Roos and led by Christchurch-based property developer Dave Henderson. David Ian Henderson was adjudicated as a bankrupt in the Christchurch High Court on 29 November 2010 and remains a bankrupt under that order. He was to have appeared before the Christchurch High Court on 9 June 2014 for public examination of his activities whilst a bankrupt, but that “has been put on hold after the Christchurch businessman refused to hand over documents he was asked to surrender. A judge ruled that emails between Henderson and several of his business associates had to be provided to investigators so they could be considered at a three-day High Court hearing, scheduled to begin on June 9.” (The Press 29/05/14).

PVL was placed into receivership on 5 March 2010 owing $69 million and then placed into liquidation on 27 July 2010. One of its many subsidiaries – Park Trustee Company Ltd – was put into liquidation on 19 June 2012.

In May 2005 PVL attempted to raise $52.5 million from the New Zealand public with an offer of $1.75 convertible notes, without much success. Those few who did subscribe were subject to a trust arrangement with Covenant Trustee Company Limited. PVL then went further afield seeking to woo overseas investors to this offer, this time listing a PVL subsidiary – Park Trustee Company – as trustee on its investment statements.

A subsequent probe into the activities of PVL commenced by the Securities Commission in 2007 following complaints from overseas investors over non-payment of interest, raised alarms over the role of the related party trustee – Park Trustee Company  – in its apparent failure to protect overseas investors. The Commission expressed concern that the PVL investment statements may have been misleading – a potential criminal breach of the Securities Act, which does cover some aspects of overseas issues.

The trust deed that bound the trustee (Covenant Trustee Company) to protect NZ investors, allowed for PVL to withhold interest payments to investors if doing so would make it (PVL) insolvent or breach other debt covenants, but non-payment would not count as a default. With such dubious terms, it is not surprising that few New Zealanders chose to invest in PVL.

Park Trustee Company Ltd [PTCL) was incorporated on 20 October 2004 under the name “Property Ventures Trustee Company Ltd” (PVTCL) with its sole shareholder being Property Ventures Ltd [PVL]). Dave Henderson, who was a director of PVL at this time (he was appointed on 6/11/02), was appointed sole founding director of PVTCL on 20 October 2004 and he was soon replaced by sole director John Edward Butler just 13 days later on 2 November 2004. On the next day, 3 November 2004, Austin John Forbes was appointed as a second director of PVTCL (record filed 4/11/04). [Read more…]

David Ian Henderson – Property Ventures Ltd (In Liq.) and role of Liquidator

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David Ian Henderson is a twice bankrupt Christchurch property developer whose Group of companies – Property Ventures Ltd [“PVL”]- were placed in liquidation on 27 July 2010. On 9 June 2014 Mr Henderson will be examined as a current bankrupt before the High Court to give account of his various activities while subject to the bankruptcy order (Note: It is unlawful for a current bankrupt to play any role in the management, directing or promoting of a company).

One of the tasks of a Liquidator nominated by the Commissioner of Inland Revenue and appointed by the High Court to liquidate a large Group of companies such as PVL, is to try and determine whether or not a director(s) of the Group has committed any offence(s) under the Companies Act 1993, the Insolvency Act 2006, The Securities Act,  the Tax Administration Act 1994, or the Financial Reporting Act 1993 etc., and report any breach(es) to the Registrar of Companies.

The task of unravelling the often convoluted network of company subsidiaries and related companies within such a Group can be a daunting one for any Liquidator, as illustrated in the example below – involving ongoing litigation initiated by the Liquidator against David Ian Henderson (and his companies) because he has allegedly failed for some years to provide the required documentation to him the liquidator to complete his statutory duties. Liquidators have a statutory right under s. 261 of the Companies Act 1993 to demand financial records, records of company related correspondence etc. from a company director. Failure to provide it in response to a formal request is an offence and if  convicted, the director “is liable to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 2 years” under s. 373(3) of the Act.

The liquidator has reported that a proliferation of companies were used by Henderson to “thwart liquidators,” by liberally using cross-guarantees to muddle the affairs of various entities.

Property Ventures Ltd (In liquidation) – Unravelling a complex “single economic unit”  [Read more…]