2007 media releases
Businessman pleads guilty to $1.3 million in tax charges
16 August 2007
Wellington businessman James Stewart Thwaites was convicted yesterday of tax charges totalling more than $1.3 million.
Thwaites pleaded guilty in the Wellington District Court to 92 counts of aiding and abetting five companies to fail to account for payments to Inland Revenue.
He was sentenced to 400 hours of community service and fined $60,000.
PAYE, Student Loan and Child Support payments were deducted from employee earnings between 2004 and 2006, but the money was not passed onto Inland Revenue. Thwaites is the director of all the companies involved.
They are Capital Hog Ltd, Loaded Hog Auckland Ltd, Capital Language Academy of New Zealand Ltd, Thistle Holdings Ltd and Steamship Wharf Ltd.
The total employee deductions not paid to Inland Revenue for the five companies by the due date was $1,346,353. This sum, plus more than $110,000 in late payment penalties and interest, has been repaid.
In sentencing, the Judge John Walker told the court that the nature of the offending and the large sum of money involved would normally lead to a term of imprisonment. However, a strong factor in avoidance of a prison sentence was Thwaites' cooperation after charges were laid.
Inland Revenue Manager Legal and Technical Support, Colin Hutchins, said the department takes tax evasion seriously.
"PAYE is deducted from employees' wages on trust and must be promptly paid to Inland Revenue. Employers do not have the right to use employees' deductions to prop up a struggling business or to pay other creditors," he said.
"Businesses that trade on while not meeting their tax obligations obtain an unfair advantage over the majority of honest businesses that do pay their taxes."
Businesses in financial difficulty should contact Inland Revenue to discuss alternatives for payment such as an instalment arrangement. "Simply opting out can have serious consequences," said Mr Hutchins.
In 2003 Thwaites was convicted of aiding and abetting Thistle Holdings Ltd to evade PAYE payment. In that instance, Thwaites and the company were fined $10,500 each.
Ends
For further information contact:
Adrienne Perry
Senior Media Advisor
04 890 1698
029 890 1698
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
- 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
- Nelson man in court for not passing on employees' tax 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
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: 16 Aug 2007
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