Inland Revenue had applied to the High Court to put The Terrace Bar Ltd into liquidation.
A hearing is set for next Thursday in the Dunedin High Court. The application was first filed in January.
The statement of claim presented in the High Court said a total of $430,779.52 was owed by The Terrace Bar Ltd to Inland Revenue.
This was made up of $74,230.29 around GST, $356,489.23 around employer activities and $60 for income tax.
Last November, The Terrace Bar Ltd was served with a statutory demand under the Companies Act of $367,540.43. The statement of claim said the company failed to comply with the statutory demand and was insolvent.
The defendant was insolvent and unable to pay its debts. In the circumstances it was just and equitable that the company be placed in liquidation.
The Terrace Bar has been operating in the Octagon for more than 20 years although it changed to CBK more than five years ago.
The Terrace Bar Ltd director John Macdonald said when contacted yesterday the issue related to some historical tax debt that went back to Covid times.
‘‘We are currently in negotiation with Inland Revenue and are expecting to have it settled before such time as it goes to court,’’ he said.
He declined to comment on the money owed.
The business was open and trading, though he said the hospitality industry was difficult at the moment.
When asked if he was confident in reaching agreement with Inland Revenue he said he was as confident as he could be.
He was working with his lawyers, accountants and financial advisers to put a proposal back to Inland Revenue that hopefully it would accept. He declined further comment.
When contacted, Inland Revenue declined to comment.
CBK is a series of six similarly themed bar-restaurants throughout the country.
