2010 media releases
Home detention for tax evasion
30 August 2010
A Mt Maunganui man who tried to get a $2.375 million GST refund for a business deal he never had the money to complete has been sentenced to 12 months home detention.
Michael Philip Graham Yorke was sentenced in the Tauranga District Court today after admitting a charge of tax evasion. He was also sentenced to 200 hours community service.
"This is a case of a very calculated attempt to try to get a substantial sum of taxpayer money based on a deal that was completely bogus," said Jonathan Matthews, Assurance Manager, Investigations.
"The sentence shows how seriously the courts view this sort of offending and the prosecution taken against Mr Yorke shows Inland Revenue can and will detect fraudulent claims and hold people to account."
Yorke registered for GST in early 2006 listing his taxable activity as internet website design. A month later he sent in a GST return, which claimed inputs of $21,375,000 resulting in a GST refund position of $2,375,000.
The refund was not released and an investigation was started. Yorke was asked for documents supporting his claim and provided a tax invoice for the purchase of 10,000 web licences at a cost of $2,250 each from a recently formed Hamilton base company.
Inquiries with the company confirmed a contract, but payment was never made.
When Inland Revenue investigators expressed concern about Yorke being able to fund the deal, he claimed that a part payment of $18 million had already been made in cash. Inquiries showed that was false and that he was never capable of making the $21,375,000 payment detailed in his GST return.
It was also established Yorke approached his bank within a week of submitting the claim and made arrangements for an intended deposit of $2.35 million to be disbursed to other accounts, family and friends.
For further information:
Catherine Delore
(04) 890 1698
(029) 890 1698
Catherine.delore@ird.govt.nz
Other media releases this year
- Greymouth taxpayers concerned about provisional tax and GST urged to contact Inland Revenue
- 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
- 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
- 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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