2008 media releases
Jail for horticultural student
2 July 2008
Horticultural student Gurpreet Singh was jailed for two and a half years by the Tauranga District Court today, after pleading guilty to 97 charges of tax evasion worth nearly $700,000.
Singh is the latest of a number of people in the horticultural industry to be prosecuted for similar schemes.
He arrived in New Zealand in September 2002 from India on a temporary immigration entry permit and was for some time an overstayer before being given a student permit to study horticulture.
In October 2005 Singh became involved in a tax evasion scheme prevalent in the agricultural industry.
"The scheme typically involves visitors to New Zealand forming horticultural companies and registering them for tax. Invoices would then be issued in the companies' names for work completed by actual contractors," said Inland Revenue Assurance Manager Richard Philp.
"Payment is returned to the contractor who completed the work and the company is paid a fee for providing this service.
"The company never files a return or pays any tax, and when Inland Revenue makes inquiries, the company ceases trading and the non-resident returns back to their country of origin."
Inland Revenue has estimated that Singh has issued invoices and cashed cheques totalling at least $3,426,335. The total amount of tax evaded by the defendant or other parties through the different entities involved is estimated to be at least $683,604.
"We are well aware of this scheme, and are aggressively pursuing people participating in it," said Mr Philp.
"Since April 2004, 15 Bay of Plenty and two Hamilton horticultural contractors have been successfully prosecuted for evading tax totalling nearly $20 million. All but one of those offenders have been jailed.
"Evading taxes is unfair to all other taxpayers, and in this case it's also unfair to Singh's honest competitors. We are very happy with the result of this case."
Ends
For more information:
David Balham
Media Adviser
(04) 890 1743
david.balham@ird.govt.nz
Other media releases this year
- 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
- 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
- Second jail term for major tax scam
- Welcome surprise for owners of forgotten money
- End-of-year tax date fast approaching
- Time running out for student loan amnesty
Corporate Communications
Inland Revenue
For all media enquiries phone: 04 890 1698
For general communications enquiries
Phone: (04) 890 1936
Email: corpcomm@ird.govt.nz
Fax: (04) 498 5809
P O Box 2198
12-22 Hawkestone Street
Wellington
New Zealand
Date published: 07 Jul 2008
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