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Homeless: Bankrupt's partner says it's unfair she's losing her home because of his tax evasion crimes

Author
Ben Leahy,
Publish Date
Tue, 16 May 2023, 3:52pm
A husband's failure to pay his taxes has cost his partner her home. Photo / 123RF
A husband's failure to pay his taxes has cost his partner her home. Photo / 123RF

Homeless: Bankrupt's partner says it's unfair she's losing her home because of his tax evasion crimes

Author
Ben Leahy,
Publish Date
Tue, 16 May 2023, 3:52pm

A team of police and debt collectors have booted an Auckland couple from their Mt Albert house so the property can be sold to help pay hundreds of thousands of dollars in unpaid tax.

Two police officers and four other authorities visited Paul and Julie Harding’s Morning Star Pl unit yesterday, giving the couple under an hour to vacate, they claim.

Paul Harding was found guilty of evading core tax of $385,872 early last year after failing to provide income tax and GST returns for 10 years.

He then served 10 months in prison before being released in January.

As a bankrupt, Harding’s home was also ordered to be sold, with half the proceeds going to the IRD and half going to his wife Julie Harding.

Julie Harding said the forced sale is devastating, arguing she is being punished for what her husband did.

“If I’m out of this house, I will never own a house again because I won’t be able to afford it,” Julie said.

“My world is all changed, and all I see now is the dark side of the world.”

Paul Harding earlier worked as an independent contractor for west Auckland home movers, AA Auckland Carriers, the IRD said in a press release in May last year.

“Harding didn’t register for GST or file any GST returns by the due date during the period 30 September, 2006 to 31 March, 2017,” the IRD said.

“He also didn’t file any income tax returns by the due date during the period 31 March, 2007 to 31 March, 2017.”

The IRD then successfully applied to have Harding declared a bankrupt in March 2019.

His half share in the Mt Albert unit was found to be the only asset authorities could get their hands on to try to claw back the tax debt to the IRD, a High Court judgement in June last year found.

That judgement by Justice Ian Gault said the IRD had filed claims to recover $487,242 from Paul Harding with $89,761 being declared a priority sum.

The Harding’s home had a capital value of $340,000 at the time with the couple still owing $240,000 on their mortgage to BNZ, Gault said.

Despite the unit being a permanent home to Julie Harding, Gault said he decided it should be sold because Julie Harding didn’t oppose the order in court and because authorities had tried for two years to negotiate alternative outcomes with her.

That included giving her opportunities to buy the half share in the home that authorities had seized and granting her “multiple extensions of time” to “avoid a court ordered sale”, Gault said.

He said at one point when authorities told Julie Harding in April last year they would taking control of the title to the property and “enquired as to whether Ms Harding would agree to be registered on the title ... as an equal share tenant in common, Ms Harding said it was her house and she was not interested”, Gault said.

“She then hung up.”

Gault subsequently ordered the home be sold with half the proceeds going to authorities on behalf of the IRD and half going to Julie Harding, who would also have to pay for the cost of the court hearing.

However, Julie Harding said she cannot afford a lawyer and believes she is being unfairly punished for her husband’s wrongdoings that mostly took place before their home was purchased.

“It is just the beginning of winter and my mom’s house is not big enough for us,” she said.

“So either we stay with her or we’ll sleeping in the car.”

 

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