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2008 media releases

Accountant sentenced for tax evasion
15 December 2008

A Tauranga accountant has been sentenced to ten months home detention on tax evasion charges involving more than half a million dollars.

Kevin Wayne Frazer was sentenced in the Tauranga District Court today after pleading guilty to 68 charges, involving unpaid income tax, GST, PAYE, fringe benefit tax and student loans.

He was also ordered to do 250 hours community work.

Much of the unaccounted money appeared to have been used by Frazer for personal expenditure.

Inland Revenue Manager Assurance, Investigations, Richard Philp, said those working in the tax system are expected to uphold its integrity.

"Accountants have an extensive understanding of the tax system, therefore those who cheat it should expect the consequences.

"New Zealand's tax system is based on voluntary compliance. It relies on the honesty and integrity of the tax professionals working in the system," said Mr Philp.

Frazer registered Total Taxation and Accounting Services in 1993 for GST, PAYE and income tax.

Until mid-2001, Inland Revenue received GST, PAYE and income tax returns from the company as required.

But since then, the company did not file GST or income tax returns, and payment was not made on a number of monthly PAYE returns.

An audit by Inland Revenue found payment had not been made for income tax of $46,330, GST of $384,356, PAYE of $105,965, FBT of $2,468 and student loans of $597.

When interviewed, Frazer admitted he was aware of his tax obligations and responsibilities and undertook to file outstanding returns and to keep up-to-date with his current returns. However, he failed to do so.

Including interest and penalties, Frazer owes Inland Revenue a total of $806,096.

For further information:
Catherine Delore
(04) 890 1743
(029) 890 1743
catherine.delore@ird.govt.nz

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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: 15 Dec 2008

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