A Paraparaumu pizza store owner was sentenced to 10 months home detention for more than half a million dollars of tax evasion.
Wenbin (Ivan) Shi, was sentenced in the Porirua District Court on 15 October 2026.
In sentencing Shi, Judge Nicolls emphasised the importance of deterrence and denunciation in determining the appropriate sentence. His Honour further noted that offending against Inland Revenue was not a “victimless crime”.
Shi faced a representative charge of not providing GST, company and personal income tax returns and another representative charge of aiding and abetting a Paraparaumu pizza franchise taking PAYE from staff wages and not passing it on to Inland Revenue.
Shi operated SWB Foods Limited (SWB), trading as Hell’s Pizza in Paraparaumu, since 2014 and at the time an Inland Revenue audit started in June 2024 SWB had a tax debt of $400,000.
During the audit, Shi’s personal bank accounts, and those of SWB were reviewed.
GST
The review of SWB’s accounts showed gross yearly sales of between $687,708 in 2017 and $1,390,341 in 2024. Shi stopped filing GST returns for SWB in 2020. The GST amount outstanding was $185,143.86.
PAYE
Between April 2015 and April 2018 SWB largely filed and paid PAYE on time but between July 2019 and November 2022, Shi filed returns and took the money from staff wages but didn’t pay PAYE to Inland Revenue.
PAYE arrears were deducted from the company accounts under Section 157 of the Tax Administration Act, and two statutory demands were issued which together resulted in a portion of the PAYE arrears being paid.
The amount remaining unpaid was $194,295.50.
Income tax
An accountant filed income tax returns for five years between March 2015 and March 2019, but SWB’s accountant had no contact with Shi since 2022.
SWB failed to file five yearly income tax returns between March 2020 and March 2024. The estimated amount that should have been paid is $124,415.77.
Summary
Shi had full knowledge and control over the tax obligations of the company and failed to file 25 GST returns, income tax for five years for SWB and failed to file personal income tax returns over the same period.
He also failed to pay 23 PAYE deductions to Inland Revenue.
In November 2025 Shi filed all outstanding GST and income tax returns which added up to $503,855.13. Shi had repaid $100,000.00 before sentencing, resulting in a total loss amount to Inland Revenue of $403,855.13.