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2006 media releases

PAYE evasion leads to jail term
17 October 2006

An Auckland plasterer was sentenced in the North Shore District Court today to four months' jail for evading tax of over $119,000. There was no deferment for the sentence to take effect, nor was leave granted to apply for home detention.

Peter William Silveira, as the sole shareholder of Ceilings and Architectural Limited, pleaded guilty to 24 charges of failing to pay his employees' PAYE deductions to Inland Revenue.

Mr Silveira deducted PAYE from his employees' wages, but admitted he paid the money to other creditors.

Despite Inland Revenue giving Mr Silveira ongoing education and encouragement, and offering him the opportunity to repay the tax by an instalment arrangement, the full amount remains unpaid.

Inland Revenue spokesperson Tracey Lloyd said a custodial sentence was a fair outcome.

"Taxes help pay for important community services like schools, hospitals, and the police. If someone evades tax, we all miss out.

"The courts consider that evading PAYE is especially serious. That's because the money is held in trust on behalf of employees. If an employer doesn't pay the PAYE to Inland Revenue, but spends it somewhere else, that's theft."

Mr Silveira also controlled a company owned by his partner, Tracy-Lee Blackwell. About Ceilings Limited was found guilty of evading PAYE of over $46,000.

Ms Blackwell pleaded guilty to 28 charges of aiding and abetting About Ceilings Limited, and was sentenced to 180 hours community service.

For further information contact:

 

Sharon Cuzens

Corporate Communications

04 890 1930

 

Corporate Affairs
Inland Revenue

To make a media query:
Phone 04 890 1698 or email mediaqueries@ird.govt.nz
Please note, the email address is only for enquiries from the news media. It is monitored during normal business hours 8am - 5pm Monday to Friday.

P O Box 2198
Wellington 6140
New Zealand


Date published: 17 Oct 2006

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