A Taupo bakery owner who filed false tax returns and failed to keep accurate records has been sentenced to 8 months home detention.
Long Soun was sentenced in Taupo District Court on tax offences totalling nearly $280,000 relating to his business, Chelsea Bakery and Lunch Bar.
Inland Revenue’s Group Manager Investigations and Advice, Tony Morris, said Soun had worked as an employee of the bakery since 2005 but it was while he owned the bakery between 2011 to 2014 that he purposely evaded tax.
“Soun was aware of his tax obligations, but deliberately ignored them. While operating the bakery, Soun committed a range of tax offences that included filing false GST and income tax returns and failing to keep accurate records,” said Mr Morris.
Financial accounts and notebooks showed the majority of the cash sales were not banked and that staff were employed but not recorded on PAYE returns, he said.
“These actions were dishonest towards not only Inland Revenue, but also the affected employees, who should be able to expect that tax deductions from their wages are dealt with lawfully,” said Mr Morris
Soun has since repaid approximately $220,000 of the evaded tax.