2010 media releases
Contractor jailed for tax evasion
30 August 2010
A Bay of Plenty labour contractor has been sent to jail for 19 months after admitting tax evasion of more than $166,000.
Abdul Zaheed was sentenced in the Tauranga District Court today on 15 charges and was also ordered to pay reparation of $20,000.
Inland Revenue Assurance Manager, Investigations, Jonathan Matthews, said Zaheed's actions were deliberate and calculated.
"He set up a company and then failed to meet the tax obligations for substantial income. He wasn't only cheating taxpayers, he was getting an unfair advantage over other businesses in the industry that played by the rules," said Mr Matthews.
"Not paying the PAYE, also meant Zaheed’s workers could possibly get additional benefits they weren’t entitled to, or not meet responsibilities like child support or making student loan repayments."
Zaheed had been involved in supplying labour for orchardists and packhouses since 2001, and set up a new labour contracting business, Multani Horticulture Ltd, in September 2008.
The company registered for GST and income tax at the same time, and was required to file GST returns every two months and PAYE returns monthly and to pay the tax assessed. However, by May 2009 it had failed to file any GST returns and had only made two PAYE payments totalling $3,305.
Inland Revenue got copies of the company’s bank statements which indicated it earned contracting income for GST purposes of at least $1,212,328 between October 2008 and the end of March 2009.
Zaheed subsequently agreed to file GST returns which showed unpaid tax owing of $134,547. Monthly returns filed showed PAYE of $199,000 was owed. GST and PAYE returns were also not filed from April 2009 to the end of July 2009. During that time another $245,000 was earned by Zaheed’s company, resulting in tax owed of nearly $74,000. Inland Revenue received just over $200,000 of withholding tax credits for the company and around $40,000 from deduction orders placed on company bank accounts which was credited off the debt.
For further information:
Catherine Delore
(04) 890 1698
(029) 890 1698
catherine.delore@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
- Home detention for tax agent
- Repayment holiday ends for overseas borrowers
- Routine traffic check ends tax evasion
- Hoax email and phishing site warning
- Home detention 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
- Takeaway owner gets home detention for tax evasion
- 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: 01 Sep 2010
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