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2009 media releases

Te Kuiti accountant jailed for 12 months for tax evasion
7 July 2009

A Te Kuiti accountant and businessman has been sentenced to 12 months jail after failing to pass on PAYE deductions from staff over a six year period.

James Ivan Woollams was sentenced in the Hamilton District Court after admitting 76 charges involving PAYE and GST between 1998 and 2004. He was granted leave to apply for home detention.

Inland Revenue Manager Investigations, Assurance, Neil Lewer, said people who try to cheat the system will be caught.

"Inland Revenue has specialist staff working on uncovering fraud and tax evasion and we will catch up with people like Woollams."

"If an employer isn't passing on PAYE from their employees and using it for something else it is theft. They are taking money that should be going to services in the community like hospitals and schools."

Woollams owned a giftware and stationery store in Te Kuiti. As well as running Cabana Gifts, he also provided accounting and commercial services to people.

Inland Revenue began investigating the company after being approached by staff asking why they had no earnings recorded on their personal tax summaries.

Woollams did not provide all the documents and information to allow the investigation to be conducted and Inland Revenue was required to make a statute demand for the information to be produced. He failed to comply with this demand.

From April 1998 until March 2004, Cabana Gifts employed five shop assistants. However, despite deducting PAYE from their wages it was never passed to Inland Revenue. The gross wages over the six year period was $122,039 and the PAYE amount was $21,483.

A review of the company's GST returns also established that between April 2002 and March 2003 the company understated GST by $3,784.

To date no payment for the either the outstanding PAYE or GST has been made.

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: 07 Jul 2009

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