31 Aug 2023

Push for more transparency over companies on the brink of liquidation

From Nine To Noon, 9:05 am on 31 August 2023
Company liquidation concept. File and tabs with the words insolvency, creditors and debts. 3D illustration

Photo: 123RF

Is more transparency needed over which businesses are on the brink of insolvency?

Centrix data found nearly 700 companies were put into liquidation in the first five months of the year - up from 539 in the same period last year.  

Victoria University of Wellington Professor of Taxation Lisa Marriott believes certain business tax debts could act as an early warning sign, and wants to see this information passed on to credit ratings agencies.

But IRD says it can't publish data on tax debtors before it's gone through the courts.

Kathryn discusses the issue of how to better protect suppliers, workers and customers with Lisa and Chapman Tripp senior associate Janko Marcetic, who specialises in liquidations.