2008 media releases
Sentencing strong message for contractors
29 August 2008
Inland Revenue believes the sentencing of another agricultural contractor on tax evasion charges sends a strong message to others in the industry.
Vesi Fatu was sentenced today in the Manukau District Court to six months' home detention.
He is the eighteenth agricultural contractor in the Bay of Plenty/Waikato to be convicted of tax evasion, involving around $20 million, since early 2004.
All the others, except one, were jailed.
Fatu fled the country after being charged in 2004, but was arrested early last year after returning to New Zealand.
The Court heard Fatu was issued with a warning in 2002 as a result of an investigation into his failure to meet GST and PAYE obligations as an agricultural contractor. A second investigation, started in 2003, revealed Fatu was employing more workers than shown on his PAYE returns and found evidence of cash withdrawals indicating the payment of wages. It also revealed he was charging GST to various customers between 1999 and 2002, despite not being registered for GST.
From November 1999 to February 2002 Fatu received a total of $286,857, including GST, for providing agricultural contracting services. He employed up to 30 employees and failed to deduct and account for PAYE.
When interviewed by Inland Revenue, Fatu initially claimed he ceased GST and PAYE registrations because the contracts did not go ahead. But when confronted with evidence, he admitted supplying contracting services using employed workers.
Fatu did not retain business records, but investigators found he failed to return $31,873 in GST and $33,581 in PAYE. Neil Lewer, Area Manager, Investigations, Hamilton, said that the sentencing is a good outcome for the agricultural industry as a whole.
"We've had a lot of feedback from industry representatives who appreciate our efforts to 'clean up' the industry and make life easier for the legitimate contractors who find it difficult to compete with those evading tax."
"The courts are taking tax evasion seriously and I strongly hope convictions of this kind will deter other contractors who may be thinking about trying to evade their tax obligations" said Mr Lewer.
END
For further information:
Catherine Delore
04 890 1743
029 890 1743
Catherine.Delore@ird.govt.nz
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
- 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
- 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 Affairs
Inland Revenue
To make a media query:
Phone 04 890 1698 or email mediaqueries@ird.govt.nz
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P O Box 2198
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New Zealand
Date published: 03 Sep 2008
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