2007 media releases

Nelson man in court for not passing on employees' tax payments
22 March 2007

A Richmond, Nelson, man was today sentenced to 300 hours community service for taking PAYE taxes from his employees' wages but not passing the tax onto the Inland Revenue.

Stephen Murray Winter worked in the silviculture industry with 11 staff and was paying out about $60,000 each month in wages. He had sometimes filed PAYE schedules with Inland Revenue but had not passed on any of the employees' tax money. The amount of tax totalled $19,396.

Last month he was convicted by Judge Lee in the Nelson District Court on 16 charges of failure to account for tax deductions and one charge of failing to register for GST. The offences, under the Tax Administration Act, occurred between January 2005 and April 2006.

In court today he was sentenced to 300 hours community service by Judge Zohrab, and also ordered to pay $8132 of reparation.

The court had heard that Mr Winter knew he should be passing the PAYE payments onto Inland Revenue, but had decided not to. He had told Inland Revenue investigators that the costs of running his business, repairs and wages were also a major factor in making the decision.

Lynley Sutherland, of Inland Revenue, said people who cheat on their taxes make it very difficult for honest businesses to compete.

"Taxes help pay for important community services like schools, hospitals, and the police," said Ms Sutherland, Area Manager Investigations, Inland Revenue. "If someone evades tax, we all miss out.

"The sentence showed that the courts consider 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."

Businesses who want to put their tax affairs in order should contact their local Inland Revenue office, said Ms Sutherland. "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."

For further information contact:

Alison Welch,
Senior Media Advisor

029 890 1930

Other media releases this year

• Draft guidelines released for new R&D tax credit
• Man extradited from Australia to face tax charges
• Working for Families Tax Credits to be made early
• Inland Revenue alerts tax professionals
• 'Money man' behind major tax scam jailed
• Third conviction in Rawleigh tax evasion case
• Samoan chief receives two years' home detention
• Early working for families tax credits scheduled
• Cash businesses are in the spotlight
• Inland Revenue transfers first KiwiSaver funds to scheme providers
• Late filers advised to contact Inland Revenue
• Wellington Inland Revenue staff to centralise
• Christchurch businessman fined $20,000 on tax charges
• Hamilton JP jailed for two years for $1.1 million tax evasion
• Businessman pleads guilty to $1.3 million in tax charges
• Jail term extended for Tauranga tax evader
• Inland Revenue offers Language Line
• Inland Revenue wins prestigious IT award
• Inland Revenue simplifies tax with Business Is Booming
• Inland Revenue reassures people affected by weather
• Customers urged to contact Inland Revenue
• Inland Revenue issues GST statement on unconditional property sale agreements
• KiwiSaver information readily available from Inland Revenue
• Scott Anderson bankrupted for unpaid debt of $13 million
• Inland Revenue welcomes 'Trinity' court ruling
• Christchurch tourism operators' concern leads to community service for tax evader
• Inland Revenue welcomes prison sentence for GST fraud
• Levin man sent to jail over $45,000 in GST fraud
• Businessman who "undercut the opposition" jailed for tax fraud
• Accountant's low profits prompted tax audit
• "Not a lot" of effort to pay taxes results in jail term for tax evasion
• Tiler in court for keeping staff tax payments
• Northland flood victims should call if having problems with tax payments
• Tax agent fined $10,000 for refusing to cooperate with Inland Revenue
• Early Working for Families Tax Credits payments
• Tax season underway
• Businesses foolish to try to suppress details of income
• Dairy owner in court for cheating on taxes over seven years
• Two years' prison for 146 tax offences
• Refusing to cooperate with Inland Revenue lands couple in court
• Prison sentence upholds integrity of tax system, says Inland Revenue
• Early family assistance payments
• Tax payments due on 7 February

more media releases ›

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: 26 Mar 2007

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