Embattled Auckland property developer Andrew Krukziener gave up a 10 year battle against Inland Revenue when he yesterday put himself into voluntary bankruptcy.Mr Krukziener (pictured) surrendered himself to the Official Assignee in Auckland shortly befor
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Embattled Auckland property developer Andrew Krukziener gave up a 10 year battle against Inland Revenue when he yesterday put himself into voluntary bankruptcy.
Mr Krukziener (pictured) surrendered himself to the Official Assignee in Auckland shortly before noon on Thursday, his lawyer Bruce Stewart QC disclosed this morning.
Mr Stewart told NBR that Mr Krukziener's fight to satisfy creditors had now proven "too much" for him and he "could not handle it any longer".
Mr Stewart said Mr Krukziener had been in discussions with the Official Assignee and had finally decided the only way forward was to place himself in bankruptcy at 11.57am on Wednesday.
The Official Assignee has control of Mr Krukziener's affairs for three years.
In November Mr Krukziener, who owes a collective $47 million, withdrew his application for High Court approval of plans to repay creditors $350,000 over four and a half years.
His creditors’ plan was opposed by IRD which claimed he owed them $6.67 million in taxes.
IRD’s claim followed their reappraisal of Mr Krukziener’s financial affairs. IRD regarded $5 million of loans that Mr Krukziener received between 1991 and 2002 as taxable income.
IRD’s reassessment effectively increased Mr Krukziener’s tax liability from about $600,000 to the higher figure with extra penalties.
Mr Krukziener has been a popular developer whose financial affairs imploded following his far-sighted building of Auckland’s Metropolis skyscraper.
His lawyer Mr Stewart said he could not discount the possibility that if Mr Krukziener’s bankruptcy proceedings worked out smoothly, Mr Krukziener could apply for early discharge.
