Film-maker bankrupt over taxes

Prominent Ma¯ ori broadcaster and film-maker Tainui Stephens has been made bankrupt, owing tax, interest and penalties of $675,868.88.

A judge said Stephens’ perceived importance did not mean an exception could be made for him, given the age and size of his tax debts and the concern that they would continue if he was not made bankrupt.

The suggestion that Stephens might have properties or proceeds from the sale of properties, meant the Official Assignee – who oversees the affairs of people in bankruptcy – should look into Stephens’ circumstances, Associate Judge Warwick Smith said in a recent decision.

Stephens, who lives in Otaki, said yesterday that the debt¯stemmed from a period about 10 years ago during the long illness, and then death, of his wife. ‘‘It was a devastating time for me. As I struggled with it all, I wasn’t able to keep up with my annual returns.’’

When he found happiness again in a new marriage and life, he began the long process of catching up with tax paperwork. ‘‘With interest and penalties etc, it was way beyond my means. Insolvency was a pretty logical result,’’ he said.

Stephens said it was all a personal matter with no relationship with his work.

Inland Revenue originally got judgment against Stephens in the Wellington District Court in June 2017 for $551,027.63. By February 2018, the debt had climbed, with interest and penalties, to $675,868.88.

Stephens said the core tax debt was about $166,000. He had a history of not filing returns and paying tax, going back to 2007.

In late 2016, Stephens completed a statement of his financial position for Inland Revenue, declaring an interest in two properties in O¯ taki.

There was evidence that Stephens and his wife had also sold properties in Auckland and Nga¯ ruawa¯ hia.

A records search in January 2018 showed Stephens’ wife [film-maker Libby Hakaraia] was the registered owner of five other properties in O¯ taki bought while the tax debt was owing, the court was told.

Stephens denied any attempt to conceal assets. He offered terms to settle the tax debt but Inland Revenue refused.

Stephens has long been credited with bringing many Ma¯ ori stories to the screen, including a documentary on the Ma¯ ori Battalion, feature films River Queen and The Dead Lands, and television series The New Zealand Wars. He began his screen career in 1984 as a reporter on the TVNZ programme Koha.

In the High Court at Palmerston North, the judge was told that Stephens

‘‘With interest and penalties etc it was way beyond my means. Insolvency was a pretty logical result.’’

Tainui Stephens on trying to fix his tax problem.

had the support of several prominent people in the broadcasting and film industry.

Stephens, who spoke for himself in court, asked to be able to avoid bankruptcy.

The court was told he would not be able to work in the same way, which included travelling overseas to source funding for projects, if he was made bankrupt.

In his decision, the judge said there had been a disregard, or disrespect, of tax obligations.

Stephens’ company, Pito One, was put into liquidation in February 2017, with tax debts of $232,793.47, the judge said.

The film-maker said he was ‘‘required’’ to buy back the assets of the business, though he did not say for how much or what those assets were.

The decision to buy the assets at a time when he appeared to be insolvent, had not been adequately explained, the judge said.

He acknowledged Stephens’ significant contribution over many years to the world of television and film production, and his contribution to community projects.

The judge also accepted bankruptcy carried some stigma.

Stephens was clearly very intelligent and resourceful. He had the support of his wife and some very experienced and senior people in the film and TV industries who knew he was facing bankruptcy but still held him in high regard, the judge said.

Stephens told the court he was still working on projects that contributed to the Ma¯ ori-Pa¯ keha¯ dynamic.