2006 media releases
Christchurch painter jailed on tax charges
19 June 2006
A Christchurch painter and decorator was today sentenced by the Christchurch District Court to 12 months in prison for evading tax of more than $268,000.
Michael Patrick Searle pleaded guilty to 33 charges of knowingly misapplying PAYE deductions, two charges of failing to file income tax returns, and seven charges of failing to file GST returns. He was given leave to apply for home detention.
Mr Searle started business as a self-employed painter and decorator in January 2000, and registered as an employer in November 2000, employing up to eight staff.
Despite a number of reminders from Inland Revenue, Mr Searle did not file his 2003 and 2004 income tax returns. He also failed to file seven GST returns between September 2002 and January 2005. The tax owing - $120,000 income tax and $101,000 GST - was calculated based on information obtained from Mr Searle's main contractor.
Mr Searle admitted he used the PAYE he collected from his employees to pay other bills including motor vehicles, paint supplies and rent. In sentencing Mr Searle, the judge imposed a reparations order of $1000 per week in respect of the balance of the core debt of around $166,000. That order recognised the successful nature of Mr Searle's business - due at least in part to him not paying tax.
Inland Revenue South Island Service Centre Manager Maurice Lawlor said today's sentence was good news for the Christchurch painting industry. "When someone evades tax it makes it very difficult for honest businesses to compete."
Mr Lawlor urged anyone having trouble paying their tax to contact Inland Revenue.
"The first thing you should do is file your returns, even if you can't pay the tax owing. In most cases, we can arrange for you to pay your tax by instalments over a period of time."
Other media releases this year
- It's IR 3 time - for many of us
- Owner of chain of rest homes get 21-month prison term for million dollar tax evasion
- Family assistance payments to be made early
- Inland Revenue welcomes tough sentence on tax fraudster
- False identity charges lead to jail term for Christchurch woman
- PAYE evasion leads to jail term
- Family assistance payments to be made early
- Inland Revenue welcomes Govt3 award wins
- PAYE Subsidy available for employers
- One month left to seek penalty cancellations
- Inland Revenue can offer help to weather-affected businesses
- Prison for Tauranga contractor on tax fraud charges
- Inland Revenue confirms stand on depreciation
- Family Assistance payments to be made early
- Tax discount for new businesses
- Tauranga contractor jailed for tax offences
- Inland Revenue revises rules on shortfall penalty application
- Inland Revenue Flood Support
- Family Assistance to be paid early
- Inland Revenue website wins People's Choice award
- Tax due date coming up on 7 February
- Family assistance payments to be made early
Corporate Affairs
Inland Revenue
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New Zealand
Date published: 19 Jun 2006
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