2009 media releases
Extradited tax fraudster sentenced to home detention
15 May 2009
A former dairy owner, extradited from Australia to face tax fraud charges, has been sentenced to nine months home detention.
Pravin Kumar Patel was sentenced today in the Hamilton District Court after earlier admitting 25 charges involving GST, income tax and "family support" fraud. He was also ordered to do 300 hours community service.
Inland Revenue Assurance Manager, Investigations, Richard Philp, said Patel set out to defraud taxpayers for his own personal gain.
"Instead of paying his taxes so they rightfully went to services such as hospitals and schools, Mr Patel was using that money for his own purposes, such as buying properties," said Mr Philp.
"He was also taking a very unfair advantage over other businesses which are paying their taxes and meeting their obligations."
Patel bought a dairy in Auckland in 2002, and sold it the following year before buying another dairy in Hamilton.
Inland Revenue notified Patel in June 2006 that it would be auditing his business.
It was discovered that over a three-year period, undeclared cash deposits of $370,000 were made into various accounts operated by Patel and his family. The money was used towards the purchase of a section in Hamilton and two rental properties.
In March 2007, Patel went to Australia, after telling his tax agent he was returning to India to look after his sick father. Inland Revenue subsequently discovered $370,000 had been transferred into a Melbourne bank account.
He was extradited to New Zealand in November last year.
For the period April 2004 to May 2007, Patel owed $148,620 in income tax, GST and overpaid Family Support tax credits. He has now repaid $205,000 towards his resulting tax liability, which includes penalties and interest, but still owes around $20,000. He also has outstanding returns for some other periods.
For further information:
Catherine Delore
(04) 890 1743
(029) 890 1743
catherine.delore@ird.govt.nz
Other media releases this year
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- Two jailed for multi-million dollar tax fraud
- High Court ruling on Westpac case
- Christchurch man jailed for GST fraud
- Tsunami donations tax credits
- Former Queenstown man jailed on tax evasion charges
- Jail for $5 million tax fraud
- Tiler jailed for $1.6 million tax evasion
- Online service makes tax refunds easier
- Inland Revenue welcomes High Court decision
- Auckland property consultant jailed for tax fraud
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- Property developer sentenced for GST fraud
- Wellington man sentenced for tax fraud
- Man jailed for GST fraud
- Helping you get it right
- Last day for tax returns fast approaching
- Auckland man sentenced on GST fraud charges
- GST fraudster convicted again
- New Plymouth woman jailed for fraud
- Christchurch man sentenced on tax offences
- Jail for multimillion dollar tax fraud
- Thousands of people eligible for unclaimed millions
- Inland Revenue appeals High Court decision
- Inland Revenue considers voluntary redundancies
- Talk to us, says Commissioner of Inland Revenue
- Apply now for the provisional tax ratio option
- Keep IRD numbers confidential
- Wellington accountant sentenced on tax fraud charges
- Avoid unexpected GST bills on apartment sales
- Nelson man jailed for tax evasion
- Stay informed about KiwiSaver changes
- Tax payment date fast approaching
- Former tax agent employee sentenced for fraud
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 May 2009
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