2007 media releases
'Money man' behind major tax scam jailed
27 November 2007
Inland Revenue is welcoming the jail term of five years and nine months handed down to Mohammed Wasim for his part in a horticultural industry tax fraud involving more than $15 million.
The Wainuiomata orchard worker was sentenced in the Tauranga District Court by Judge Moore today on 81 counts of tax evasion, in the biggest horticultural industry tax fraud ever prosecuted by Inland Revenue. He is required to serve a minimum non-parole period of three years.
The total tax amount evaded was $15,080,861.
The department began investigating the tax evasion scheme operating in the agricultural contracting industry in 2001. It involved contractors evading GST, PAYE and income tax by claiming work completed for growers by the contractor's employees had been sub-contracted to other companies.
The court heard Wasim recruited young Pakistani and Bangladeshi men to incorporate companies and register them for tax. Contractors contacted Wasim, known as a 'money man', to obtain a tax invoice from one of these companies. These invoices were for work the contractors had completed for growers, and for which they had already been paid.
The contractor paid the invoice, and Wasim repaid the money to the contractor, less a fee for himself.
At least 36 companies are believed to have been used in the scheme. Wasim is the first person to be sentenced in relation to this scheme, but other prosecutions are pending.
Inland Revenue Assurance Manager Raju Budhia said the prison sentence was a very good outcome for the horticultural industry as a whole."Most contractors run honest businesses, and find it difficult to compete with those who are evading tax.''
''The courts are taking tax evasion seriously,'' he said. ''Since January 2005, another twelve Bay of Plenty agricultural contractors have been successfully prosecuted for evading tax totalling more than $4.4 million. Ten of the contractors were jailed, for an average of 21 months.''
Mr Budhia said that Inland Revenue has the skills and resources to detect taxpayers trying to evade their taxes. "We use a wide range of sources and have extensive knowledge of profit levels in various industries."
Ends
For further information:
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
- 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
- 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: 27 Nov 2007
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