2008 media releases
Second jail term for major tax scam
8 February 2008
Inland Revenue is welcoming the jail term of two years and nine months handed down to Muhammad Hussain for his part in the biggest horticultural industry tax fraud ever prosecuted by Inland Revenue.
The orchard worker was sentenced in the Tauranga District Court yesterday on 61 counts of tax evasion.
Hussain was formerly employed by Mohammed Wasim, the so-called "money man" behind a tax fraud involving more than $15 million.
Inland Revenue estimates that as a result of Hussain's actions GST and PAYE of more than $440,000 has been evaded by agricultural contractors.
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 Hussain was arrested in Napier in April 2007 on unrelated matters. He had more than $40,000 in his possession as well as invoice books that became important pieces of evidence in Inland Revenue's investigation.
Inland Revenue Assurance Manager Raju Budhia said the unravelling of the Bay of Plenty scam was a very good outcome for the horticultural industry as a whole. "Inland Revenue is working with industry associations and businesses to ensure there's a level playing-field in this industry.''
Mr Budhia said that Inland Revenue had the skills and resources to detect taxpayers trying to evade their taxes. "Tax evaders will be caught and sentences such as this one show that the courts are taking evasion very seriously."
Ends
For further information:
Mac Dalton
Media Advisor
(04) 890 1743
(029) 890 1743
Other media releases this year
- Accountant sentenced for tax evasion
- Invercargill accountant jailed for tax evasion
- Dairy owner sentenced for hiding half a million
- Tauranga court jails man for tax evasion
- Most Working for Families recipients not charged interest for overpayments
- Former Kaikohe farm manager jailed for tax evasion
- Auckland plasterer jailed for tax evasion
- New callback service rolled out across Call Centre
- Former employee sentenced
- KiwiSaver report released
- Inland Revenue expands e-services
- Do-it-yourself tax refunds
- Employers reminded about new tax rates
- Former Inland Revenue employee pleads guilty to corruption
- Sentencing strong message for contractors
- Accountant jailed for defrauding clients and Inland Revenue
- Inland Revenue pilots callback system to help customers
- Inland Revenue proposes changes to company tax return
- Agricultural contractor sentenced
- Jail for horticultural student
- Tax fraud results in jail term
- Thousands apply for student loan amnesty
- Early Working for Families Tax Credits payments
- Inland Revenue wins People's Choice NetGuide web award for second time
- Waikato couple sentenced for tax evasion
- Inland Revenue warns about income diversion
- Report of investigation of an error in tax revenue numbers
- Tax credits for people made redundant
- R&D tax credit goes live
- Student Loan amnesty - last chance to apply
- Revised financial statements
- Tax advice for investors in failed finance companies
- Tax advice for property investors
- Provisional tax gets easier
- Early Working for Families Tax Credits payments
- IRD numbers about to get longer
- Tax authorities work together to stop international tax evasion
- Inland Revenue helps drought-affected farmers
- IRD numbers available at NZ Post and AA
- Inland Revenue warns against divulging personal details
- Welcome surprise for owners of forgotten money
- End-of-year tax date fast approaching
- Time running out for student loan amnesty
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: 08 Feb 2008
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