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Murray Allott’s membership at the NZ Institute of Chartered Accountants has been suspended temporarily, pending a final decision. (File photo from 2019)
His website claims he’s assisted people with “every imaginable accounting or business problem” for four decades, but a Christchurch accountant has fallen into his own debt hole.
Prominent liquidator and profit coach Murray Allott, 63, owes Inland Revenue over $817,000 in unpaid taxes and is considered a risk to the reputation of the accounting profession, according to the NZ Institute of Chartered Accountants (NZICA).
His debt remains outstanding while sitting on valuable properties, including two in an affluent Christchurch suburb.
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His insolvency practitioner’s licence was cancelled by the NZICA on December 2, after the Institute’s disciplinary tribunal ordered a temporary suspension of his membership.
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According to tribunal records, Allott initially fought against being suspended on the grounds that he was not insolvent – the legal term for being unable to cover debt – but later withdrew his opposition.
Regardless, the tribunal reviewed evidence in a hearing to ensure suspension was appropriate. That included considering information from Inland Revenue claiming a debt of over $565,000, not including penalties and interest.
The tribunal said Allott disagreed with the amount owed, but admitted to not knowing the exact sum.
He advised the tribunal of an additional debt which may be over $817,000, but the tribunal said it was unclear if Inland Revenue’s figure of $565,000 was included in that larger sum.
“It discredits the profession for a Chartered Accountant and particularly for an insolvency practitioner to be unable to meet his IRD debts,” the decision noted.
STUFF
Inland Revenue is preparing for another wave of change (first published February 2020).
Allott reportedly argued he could pay his debts using assets and liabilities, but failed to do so by the hearing date.
Information about those assets, supplied to the Institute prior to the tribunal hearing, was reportedly “controversial” and criticised during an NZICA practice review during August and September.
The tribunal determined Allott’s situation was enough of a risk to the public and “integrity of the accounting profession” to order an interim suspension.
Dunedin-based liquidator Iain Nellies confirmed Allott had approached him to take over his cases, which included five liquidations and two receiverships.
Allott did not respond to a request for an interview. On his website, now inactive, he claimed to have helped people with “every imaginable accounting or business problem” since 1981.
He had also been a profit coach for decades, registering a consultancy company in 1996.
“The first step to adding $50,000 or more to your net profit is to contact my team,” the website read.
More recently, he and his companies had faced financial troubles. His company Groynes Development was subject to several liquidation actions in 2015, which were later dropped.
In 2019, Inland Revenue began action to liquidate both Groynes Development and Tarocash Services, another company of Allott’s. It later withdrew those actions.
In the same year Inland Revenue applied to have Allott declared bankrupt over $483,582 of unpaid tax and penalties.
Allott told the disciplinary tribunal those matters were settled and separate from his current situation.
Inland Revenue declined to comment for privacy reasons.
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