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2007 media releases

Samoan chief receives two years' home detention
24 October 2007

Samoan paramount chief, former Samoan MP and company director Seminary Iakopo Fepuleai was sentenced last week to two years' home detention for tax evasion.

A two-week trial in the Manukau District Court culminated in a jury finding Fepuleai guilty of 46 counts of GST and income tax evasion, involving more than $800,494 in unpaid tax.

The court heard that between 1997 and 2004, Fepuleai operated three companies providing labour to fruit and vegetable growers, despite being bankrupted between 1997 and 2000.

The companies operated in the South Auckland and Waikato regions, and contracted with fruit and vegetable growers to supply labourers to undertake tasks such as onion clipping and kiwifruit picking.

Fepuleai was responsible for all activities undertaken by the companies including negotiating contracts, issuing tax invoices, filing returns and the employment of staff.

During Inland Revenue's investigation, Fepuleai admitted GST, PAYE and any left-over funds had been taken to pay personal debts as a result of money lost in a Nigerian loan scam. However, he could not supply any documentation to support claims that he had lost money in the scam.

PAYE is deducted from employees' wages and must be promptly paid to Inland Revenue. "Employers do not have the right to use employees' deductions to pay their personal debt or other creditors," said Inland Revenue Area Manager Investigations, Neil Lewer.

The community expects taxes will be used for the benefit of the country as a whole, not for filling the pockets of an individual, he said. "This sentence sends a strong warning to those who deliberately attempt to evade their taxes, and shows the consequences of being found out."

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Date published: 24 Oct 2007

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