An Auckland company director was sentenced to home detention for aiding and abetting his companies from failing to account for PAYE.
Matthew Keith Sanders appeared in the Auckland District Court on 19 November 2025 and was sentenced to 11 months home detention.
Sanders, who was living in Australia, voluntarily returned to New Zealand to avoid extradition.
Three representative charges and a single further charge of aiding and abetting four companies to deduct but not pass on PAYE to Inland Revenue (IR) for a total of 38 periods.
The companies were involved in fire sprinkler installation and maintenance, a building consultancy service, a general engineering and an investment company all operating in Auckland.
All companies were required to account for deductions made from employees’ wages (including child support payments) and to pay that money on to IR.
The amount not paid by the due date by the companies Sanders controlled is just under $1.4 million.
As well, the companies received more than $740,000 from various COVID-19 relief schemes.
Sanders was the controlling mind of the four companies and was the only person in a position to ultimately authorise the misapplication of PAYE funds.
In sentencing the Court was heavily influenced by the case of Gower where the Court of Appeal had previously indicated that a lack of deception and personal benefit can make a significant difference to a sentencing starting point.
The Judge began with a starting point of 3 years and 10 months in prison but discounts for early guilty pleas, remorse, co-operation and other significant personal factors halved that, meaning home detention was available as a sentence. Sanders received a discount for his voluntary return to New Zealand.