2005 media releases

GST fraud gets jail sentence for Auckland property developer
13 December 2005

Auckland property developer Gavin Richard Harris, 47, was today sentenced to two and a half years' in prison in the Auckland District Court, after pleading guilty to a representative charge of using documents with intent to obtain a pecuniary advantage or benefit. 

Nine charges were originally laid in April 2004 by Inland Revenue under section 229A(b) of the Crimes Act 1961 after an extensive tax investigation of Mr Harris' purported property development business. That investigation showed that Mr Harris had defrauded Inland Revenue of GST of $455,310.79 over two and a half years by filing GST return forms based on a series of fictitious transactions which had no substance and were executed solely for the purpose of obtaining GST refunds. 

Mr Harris was adjudicated bankrupt on 14 May 2003 on petition of third-party creditors during the Inland Revenue investigation and has also been prohibited from being a Company Director, pursuant to section 385 of the Companies Act 1993, until 9 February 2009. 

Mr Harris defrauded Inland Revenue by fraudulently obtaining GST refunds using a relatively complex trail of fraudulent documents and purported transactions between associated companies. The original nine charges laid were later reduced to one representative charge.

"This was a case of deliberate fraud that clearly involved a high level of systematic deception, which was acknowledged by Harris's solicitor," says senior Inland Revenue spokesperson Loraine Elliott.

"Today's sentence gives a strong message to those who deliberately attempt to defraud the revenue and shows the consequences of being found out.  It also sends a message to people in the community that fraudsters will be caught and the Courts will deal severely with them.

"We are developing more sophisticated methods of detection - something to be remembered by those who might contemplate fraudulent activities in the future," says Mrs Elliott.

Other media releases this year

• Tip-off leads to jail sentence for dishonest tax agent
• Family assistance payments to be available early
• Inland Revenue releases new tax rules for people who host boarders
• Inland Revenue seeks owners of forgotten money
• Family Assistance Payments to be made early
• High Wealth programme brings in millions of extra tax dollars
• Identity theft, fraud lead to jail for Palmerston North man
• Reimbursement for the use of a private motor vehicle
• Hamilton man sentenced on tax fraud
• Auckland consultant gets 12 months in jail for GST fraud
• Inland Revenue signs Hewlett Packard to supply Notebook Computers
• Tauranga man jailed for horticultural tax evasion
• New Zealand and Australian tax help for business
• Salary and wage earners: are you entitled to a tax refund?
• Some seasonal workers entitled to tax refunds
• Auckland barrister jailed for tax evasion
• Inland Revenue reminding Marlborough agriculturalists
• Inland Revenue Appoints Chief Information Officer (IT)
• Incident at Upper Hutt Processing Centre
• Forged GST claim leads to eight-month prison sentence
• Inland Revenue offers help to flood affected BOP businesses
• Auckland Man jailed for tax fraud
• Inland Revenue releases view on HHG capital reduction proposals
• Prison sentence for tax evasion
• Early Family Assistance Payments
• Nine years of tax evasion brings 18 month sentence for New Plymouth bricklayer
• Tax season now underway
• Are you eligible for a childcare rebate?
• Early Family Assistance Payments
• Inland Revenue signs agreement with TelstraClear
• Inland Revenue cautions against income splitting by professionals
• Inland Revenue welcomes sentence for Hamilton PAYE offence
• Cambridge students scoop national award for tax knowledge
• US, NZ agree on tax treatment of fiscally transparent entities
• 7 February payment deadline
• Theft of Westpac courier bag - advice to taxpayers and other Inland Revenue customers
• Inland Revenue not letting up on BoP tax evasion
• Inland Revenue outlines rebate claim process for tsunami donations
• Inland Revenue welcomes sentence in $40,000 evasion case

more media releases ›

Corporate Affairs
Inland Revenue

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Date published: 13 Dec 2005

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