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2009 media releases

Man jailed for GST fraud
17 June 2009

A Mt Maunganui man who used wage records from his mother’s former company to falsely register people for GST has been sentenced to 18 months jail.

Timothy Andrew Penniket was sentenced today in the Tauranga District Court after admitting 58 charges of tax evasion.

Inland Revenue Manager Investigations, Assurance, Richard Philp, said the sentencing sends a strong message that tax cheats will be caught and face serious consequences.

"People trying to rip off the system like this for their own personal gain are essentially stealing from the community."

"They’re taking money that should be going to hospitals, schools and other public services," said Mr Philp.

In October 2007, Penniket used wage records obtained from a company his mother had run to register 14 of the former employees for GST via the internet without their knowledge.

As part of the GST registration process, Penniket also changed their postal details to his PO Box number and requested that any refunds be direct credited into either his bank account, or a bank account belonging to an associate.

He submitted 32 GST returns and the money was paid into the accounts Penniket had nominated.

Inland Revenue began looking into those claims in December 2007, and also began investigating further claims Penniket submitted two months later.

$16,127 of the GST refunds was recovered from bank accounts by Inland Revenue, and reparation of $6,501 was also made by an associate of Penniket when he was sentenced earlier by the court.

In sentencing Penniket, the judge also ordered him to make $16,387 in reparation for money that was paid into his account but not recovered.

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

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Date published: 17 Jun 2009

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