Raj and his wife Jo Ganesh made the hard call for the Tasting Shed to be placed in the hands of liquidators on June 13, blaming the Covid-19 pandemic for the decision.
A report by liquidator Paul Vlasic of Rodgers Reidy shows that the IRS has a creditors’ preferential claim of $591,759 for GST and PAYE taxes.
The IRD was also listed as an unsecured creditor who owed an additional $633,340.
Vlasic said the creditor’s unsecured debt was separate and likely related to penalties and interest.
When asked how the company was able to build up such debt to the IRD, Vlasic said it was too early in his investigation to say.
The next liquidator update will be around December 14.
The third season of Eat well for less screens tonight with Raj and Michael Van De Elzen as co-hosts.
The local series gives households advice on how to lower their grocery bills and prepare healthy meals, while the hosts take a closer look at supermarket carts and takeaway.
But when asked if it looks good to see someone with such a large tax debt face a show that is meant to save people money, TVNZ spokeswoman Ginny Green said Raj’s company was not part of the show.
“Questions about this are best directed to him rather than to TVNZ,” Green said.
“We are confident that Ganesh Raj as host of the show will help us bring another fantastic season of Eat well for less New Zealand†
When asked if Raj would return to the show after this season, Green said it would not be sharing plans for any of its new and returning series, including Eat well for less New Zealanduntil the end of 2022.
A spokeswoman for Raj said she would not add anything further to the statement made after the liquidation appointment.
She added: “Now more than ever, people need tips on how to shop, cook and eat properly. Ganesh continues to champion food education, using his skills to help everyday New Zealanders cook on a budget.”
Raj and Jo Ganesh established the Tasting Shed in 2010 to convert a derelict cider shed in Waimauku.
It has been up for sale since November 2020 after another company partially owned by Ganesh Raj – the Maori Kitchen – went bankrupt.
Raj said in a statement last week that they had made the difficult decision to close The Tasting Shed after it was no longer able to pay its operating expenses, taxes and rent.
“It is with a heavy heart that we have made this decision after exhausting all financial options available to us. We have done everything we can to eradicate the effects of the pandemic, but the impact on hospitality is too heavy for us.”
He said the cost of goods and services had risen significantly and there were fewer people to fill vacancies – an industry-wide problem.
“Like many others in this industry, the impact of the past two years on our company has taken a huge toll on my and my family’s mental health, a key factor in making this difficult decision.”