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2006 media releases

Tauranga contractor jailed for tax offences
10 May 2006

A Tauranga horticultural contractor was sentenced today in the Tauranga District Court to three years and two months in prison for evading tax of more than $650,000.

Balwinder Singh pleaded guilty to 14 charges of filing false tax returns, and 14 other charges related to document and identity fraud. Between May 2003 and July 2005, Mr Singh, using forged papers, set up a number of companies in an attempt to hide taxable income from Inland Revenue.

Mr Singh was carrying five false IDs when he was arrested.

Inland Revenue Service Centre Manager Kevin Moody said the prison sentence showed the courts still considered tax evasion a serious offence. "Taxes help pay for important services like hospitals and schools. Someone evading tax isn't just cheating Inland Revenue; they're short-changing the whole community.

"I hope this conviction will deter other contractors who may be thinking about trying to evade their tax obligations. We've had a lot of feedback from industry representatives who appreciate our efforts to 'clean up' the industry and make life easier for the legitimate contractors."

The Government recently changed the withholding tax regulations to help reduce tax evasion in the fruit and wine growing industries. If a contractor is hired for certain horticultural or viticultural tasks, the employer must deduct withholding tax from payments to the contractor - even if the contractor is trading as a company.

"A contractor with a good record of filing returns and paying tax is not disadvantaged," said Mr Moody. "They can apply for a certificate of exemption or a special tax code certificate that will exempt them from withholding tax deductions, or entitle them to a reduced rate."

 

Corporate Affairs
Inland Revenue

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New Zealand


Date published: 10 May 2006

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