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2005 media releases

Hamilton man sentenced on tax fraud
5 September 2005

A 59-year-old Hamilton man and the company he controls were today sentenced in Hamilton District Court to a total of $15,000 on 32 tax evasion charges, involving over $190,000 of undeclared income. Tax, fines and penalties are also still payable on the undeclared income.

Sachind Lal is a director of Sesh Enteprises Ltd which trades as the Manhatten Superette in Hamilton East.  Sesh Enterprises was also prosecuted on 32 charges of filing false Goods and Services Tax (GST) or Income Tax returns over eight years. During this period, undeclared cash from shop sales was diverted to personal bank accounts, to repay loans and to the company credit card for purchases made by the company.

The accumulated illicit funds were then used to build up a significant property portfolio for Sachind Lal's family.

"These were serious offences, with undeclared income siphoned from the business for personal use over several years," says Inland Revenue's Hamilton Service Centre Manager Kevin Moody.

The Court heard that, when the defendant had left his teaching career to become a director of Sesh Enterprises, the business had received extensive advice from Inland Revenue on tax compliance issues, including implementing appropriate business systems and accounting for GST.

Inland Revenue started an investigation into the company and its directors in 2004, at which time Sachind Lal admitted the offences.

"Tax fraud makes it harder for honest businesses to compete on an equal footing. Today's sentence reflects the seriousness with which this is regarded by the Courts," says Mr Moody.

He encourages people who haven't been meeting their tax obligations to get their affairs in order by contacting Inland Revenue as early as possible. "There are penalties for unpaid tax, but these can be reduced significantly through talking to us at the earliest opportunity."

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Date published: 05 Sep 2005

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