2007 media releases

Christchurch businessman fined $20,000 on tax charges
20 August 2007

Inland Revenue said today a $20,000 fine issued to a Christchurch businessman, who failed to pass on his employees' PAYE tax, sent an important message to business owners.

"PAYE is taken from staff on trust that it will be paid to Inland Revenue, and no employer has the right to take it for any other purpose," said South Island Investigations Area Manager Lynley Sutherland.

Neil Gurdjieff Dougan was sentenced in the Christchurch District Court this morning on tax charges.

He had earlier pleaded guilty to eight charges of aiding and abetting Barbadoes Construction Limited and Real World Limited to take PAYE deductions totalling $91,024 from employees for purposes other than payment to Inland Revenue.

The 46-year-old was the sole director and shareholder of Barbadoes Construction Limited and one of two director/shareholders in Real World Limited. He is also a director/shareholder in other property development companies.

The Court heard that, despite reminders, Barbadoes Construction Limited failed to account for PAYE totalling $66,144, while Real World Limited failed to account for $24,879. The offending occurred between May 2006 and January 2007.

During the investigation, Dougan said the PAYE was not paid by the due date because there was insufficient funds. The tax has now been repaid, including interest and penalties.

She said that businesses which dodge tax obligations make it very hard for honest businesses to compete. "We owe it to the vast majority of honest businesses out there to take strong action."

Businesses who want to put their tax affairs in order should contact their local Inland Revenue office. "The first thing you should do is file your returns, and if you can't pay the tax owing, we may be able to arrange time for you to make payments."

Ends

For further information contact:

Alisha Kennedy
Media Advisor

04 890 1894
029 890 1894

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
• 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
• 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

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: 20 Aug 2007

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