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Wellington man sentenced for tax fraud
23 June 2009

A Wellington company director has received 12 months home detention for tax fraud involving more than $270,000.

Joseph Anthony Rosendaal was sentenced today in the Lower Hutt District Court after earlier pleading guilty to 26 charges of tax evasion.

Rosendaal's company, DeRose Limited, ran a bread delivery business and employed staff, but failed to file tax returns and pay employee deductions to Inland Revenue.

Inland Revenue Manager Assurance, Investigations, Richard Philp, said the courts are taking a firm line with people who deliberately evade tax.

"If you're in business, you have certain obligations under the law, including filing income tax returns every year. Those who are registered for GST must file GST returns. Taxes help pay for schools and hospitals, and people who evade tax are really stealing from the community."

"Failing to account for PAYE is especially serious, because the money is held in trust on behalf of employees. Employers aren't entitled to use it for other purposes," said Mr Philp.

Rosendaal incorporated DeRose Limited in October 2003, and the company commenced its bread delivery business the same month. No income tax returns were filed for the 2004, 2005, and 2006 tax years. Income tax evaded was $117,572.

Although DeRose was registered for GST, the company failed to file 14 GST returns for the period November 2003 to March 2006. GST evaded was $110,117.

DeRose employed staff, but failed to pay PAYE deductions of $48,750 to Inland Revenue between July 2005 and March 2006.

Inland Revenue had to contact DeRose's bank and supplier to get the information necessary to calculate the company's liabilities.

Total income tax, GST, and PAYE evaded was $276,439. Rosendaal was ordered to pay reparation of $5,000.

For further information:
Catherine Delore
(04) 890 1698
(029) 890 1698
catherine.delore@ird.govt.nz

 

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: 23 Jun 2009

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