Wednesday, August 5, 2009

How do they do it?

I always think it is amazing, when you read about companies going into liquidation, how much they always owe the Revenue Commissioners. Take the case of a certain restaurant gone into examinership who owed revenue the guts of 500k. How does it build up to such an amount?

The wine business is pretty closely monitored by the Revenue Commissioners as it has to be, given the amounts involved and, from our perspective, it is hard to see how a business can rack up so much Revenue debt without alarm bells going off.

Anybody know?

Is it too optimistic to think the worst is behind us or is there more carnage to come...?

1 comment:

firstpress said...

Good question. I represented an overseas wine supplier at a creditors meeting recently of a wine company that had gone 'belly up'. He was of course unsecured. Revenue as a secured creditor will get the proceeds of the wine stock once it is sold. My clients stock. Title means nothing. Revenue does protect itself to the detriment of others - even when, in this case, Revenue could have seen the warning signs and acted to protect everyone.