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2007 media releases

Jail term extended for Tauranga tax evader
8 August 2007

Orchard worker Bhupinder Singh was sentenced yesterday in the Tauranga District Court to a further eight months in prison after pleading guilty to fraud and tax evasion charges totalling $80,470.

The 26-year-old was previously sentenced in May 2007 to a jail term of twenty-eight months for similar tax evasion offences totalling $115,000.  

The latest jail term is for offences committed in 2005.

Singh operated Brar Horticulture Ltd, which issued invoices to kiwifruit contractors.

''The contractors had already completed the work themselves and been paid, but these invoices  enabled the contractors to reduce PAYE and GST payments by claiming to have subcontracted work to Brar Horticulture," said Inland Revenue Investigations Area Manager, Stuart Duff.

''In fact, Brar Horticulture did not do any of the work.''

Singh then cashed the cheques from the contractors at various Bay of Plenty banks. He kept a fee, and returned the rest of the money to the contractors.

When Singh was arrested in October 2005, he was carrying $12,000 cash, and an invoice book that detailed invoices totalling $301,263 issued by Brar Horticulture between 25 August and 6 October 2005.

Singh is one of twelve WesternBay agricultural contractors successfully prosecuted by Inland Revenue, since April 2004, for tax evasion totalling more than $3.5 million.

"This represents a small but significant percentage of the amount of tax evaded nationally each year totalling into the hundreds of millions," said Mr Duff.

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

 

Ends

For further information contact:

Adrienne Perry

Senior Media Advisor

04 890 1698

029 890 1698

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Date published: 08 Aug 2007

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