2010 media releases
Takeaway owner gets home detention for tax evasion
11 June 2010
A Wellington man has been sentenced to eight months home detention after pleading guilty to 26 charges of tax evasion and obtaining payments he was not entitled to totalling $158,194.
Yong Rong Zhi, the former owner of Alasia Seafoods in Miramar and current owner of Go Fish in Petone, was sentenced today in the Wellington District Court. He was convicted on 18 charges of providing false information to evade GST, four charges of evading income tax, and four charges of providing false information to obtain payments.
"Businesses of this type, that report low profits and low profit margins, are likely to be targeted for investigation by Inland Revenue. Yong Rong Zhi deliberately set out to try and cheat the tax system by suppressing income he received from his business. Those that evade tax will face the consequences of those decisions," said Patrick Goggin, Assurance Manager, Investigations.
"Our tax system relies on the honesty of taxpayers, and when someone isn't paying their share they're taking money from services like schools and hospitals," Mr Goggin said.
In 2001, Zhi started his first takeaway Alasia Seafoods when he purchased an existing shop in Miramar. Over five years the business returned very low profits.
Despite the low returns, he was able to purchase the business outright. In addition to buying the business he was also able to purchase the property in which the business was housed, before later selling the business and the property separately at substantial profits.
Between 2003 and 2006 the total amount of income tax that Zhi evaded was $99,052. During this period he also evaded $43,555 of GST and unlawfully obtained $15,585 of Working for Families Tax Credits.
The case is one of a series of investigations by Inland Revenue into the hospitality industry.
"We will continue to target the hospitality industry. I'd urge business owners to come forward and voluntarily disclose any understatement of income," Mr Goggin said.
For further information:
Graham McKerracher
(04) 890 1743
(029) 890 1743
graham.mckerracher@ird.govt.nz
Other media releases this year
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- Inland Revenue announces changes to service delivery
- Revenue Alert on "cloud computing" and tax records
- Greymouth people and businesses encouraged to seek help
- More tax statistics available online
- Busy online trading prompts tax reminder
- Tax offender used new identity to obtain GST refunds
- Inland Revenue wins Government category in 2010 Open Source Awards
- Care urged over property GST claims
- Unclaimed millions list updated
- More than two years jail for Auckland accountant
- Student gets five months home detention for GST fraud
- Canterbury businesses reminded to ask for help
- Inland Revenue recognised twice in 2010 Māori Language Awards
- Builder gets community service for tax evasion
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- Repayment holiday ends for overseas borrowers
- Routine traffic check ends tax evasion
- Hoax email and phishing site warning
- Home detention for tax evasion
- Contractor jailed for tax evasion
- Inland Revenue wins 2010 NetGuide Award
- Renting out your home - tax obligations
- Hoax email warning
- Home detention for tax scammer
- Man jailed for tax credit fraud
- Getting Your Tax Right - Compliance Focus 2010-11
- Last chance to change tax policy
- Company director fined for tax evasion
- Inland Revenue sets sights on undeclared offshore income
- Hoax email warning issued
- Company director jailed for tax evasion
- Revenue Alert on diverting personal income released
- Tax online gets even easier
- Plasterer sentenced for tax offences
- Tax return date getting close
- GST fraud brings home detention
- Advice over GST rate change
- GST fraudster jailed
- Property developer jailed for tax evasion
- Warning over hoax email
- Orewa College student wins Inland Revenue award
- Donations tax cheat receives home detention
- Tax information at your fingertips
- Sentence a warning for food industry
- Options available for end-of-year tax payments
Corporate Affairs
Inland Revenue
To make a media query:
Phone 04 890 1698 or email mediaqueries@ird.govt.nz
Please note, the email address is only for enquiries from the news media. It is monitored during normal business hours 8am - 5pm Monday to Friday.
P O Box 2198
Wellington 6140
New Zealand
Date published: 11 Jun 2010
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