Monday, 17 September 2012 15:02

Sentencing a warning on tax evasion

Written by 

Inland Revenue has warned people operating illegal tax schemes in the agricultural and horticulture industry that they will face serious consequences.

A Bay of Plenty man has today been sentenced to 12 months home detention and 300 hours community work after admitting tax evasion charges involving $188,000.

Balbir Singh, a 46 year old kiwifruit contractor from Opotiki, was sentenced in the Tauranga District Court after earlier pleading guilty to 22 tax evasion charges.

Investigations and advice group manager, Patrick Goggin, says Inland Revenue has been aware for some time of tax evasion schemes in the horticulture and agriculture industry and has placed a strong focus on them.

"Mr Singh is the latest in a number of prosecutions in recent years where we've caught people in the industry cheating on their tax obligations. Those who are tempted need to know we're closely watching and will take strong action.

"Our staff had spoken to Mr Singh and educated him about his tax affairs, but he deliberately chose to try to evade his responsibilities, thinking he'd get away with it.

"So our message is think again, you will be caught, and you will be dealt with," Goggin says.

Singh set up his horticultural labour contracting company, JLP Enterprises Ltd, in June 2008. Its registration showed the company required tax forms for 19 employees, and was required to file PAYE returns monthly and GST returns every two months.

Goggin says the company filed returns and made payments until February 2009, as required, but did not make PAYE and GST payments after that.

"Inland Revenue also found the company actually had between 50 and 60 employees at times and was still supplying labour to orchards after Mr Singh cancelled the company's PAYE registration in October 2009."

Inland Revenue records show PAYE returns of $52,031 that were filed but not paid. A further $77,784 in PAYE and $58,742 in GST was not filed and remains unpaid.

More like this

UK farmers take to the street

On the same day that the protesters against David Seymour’s Treaty Principles Bill marched on Parliament in Wellington, on the other side of the world, UK farmers were also marching on London.

The calvary arrives — finally!

The first batch of overseas drivers for local agricultural contracting work is expected in the country next week, says Rural Contractors New Zealand (RCNZ) chief executive Roger Parton.

Featured

Te Radar celebrates kiwi farming heritage in latest release

Undoubtedly the doyen of rural culture, always with a wry smile, our favourite ginger ninja, Te Radar, in conjunction with his wife Ruth Spencer, has recently released an enchanting, yet educational read centred around rural New Zealand in one hundred objects.

National

Machinery & Products

» Latest Print Issues Online

The Hound

Political colours

OPINION: Your old mate welcomes the proposed changes to local government but notes it drew responses that ranged from the reasonable…

True agenda

OPINION: A press release from the oxygen thieves running the hot air symposium on climate change, known as COP30, grabbed your…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter