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2005 media releases

Prison sentence for tax evasion
26 April 2005

Palmerston North District Court has reinforced Inland Revenue's firm stance on tax evasion, handing down a prison sentence to a Palmerston North couple found guilty of ignoring their tax obligations for four years.

Barry and Heather Reid were found guilty of knowingly withholding requested information from Inland Revenue, and thereby evading all income tax, GST and PAYE obligations from 2000 to late 2003. The pair were involved in the distribution of vacuum cleaners, operating their business in Wellington then later in Palmerston North.

Barry Reid was found guilty and sentenced to nine months' imprisonment, with ability to make application for home detention. Heather Reid was sentenced to six months' imprisonment, deferred until application for home detention is made.

"The sentencing is a great outcome for the community. Tax evasion disadvantages legitimate businesses who do meet their tax obligations," says Wellington Service Centre Manager Bryre Patchell.

"While the vast majority of New Zealanders meet their obligations in full, we will continue to take a firm approach with the small minority who refuse to comply with the law," says Mr Patchell.

Inland Revenue encourages anyone who is concerned their tax affairs may not be in order to contact the department as early as possible.

"There are often penalties for unpaid tax, but these are reduced a great deal if people come to us first," says Mr Patchell.

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Corporate Communications
Inland Revenue

For all media enquiries phone: 04 890 1698

For general communications enquiries
Phone: (04) 890 1936
Email: corpcomm@ird.govt.nz
Fax: (04) 498 5809

P O Box 2198
12-22 Hawkestone Street
Wellington
New Zealand

  

Date published: 26 Apr 2005

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