A Christchurch bar owner has been sentenced to 300 hours community work for tax evasion.
Peter Barton Edmonds was sentenced in the Christchurch District Court on May 28 after pleading guilty to 41 charges of aiding and abetting two companies to evade paying PAYE and other employee deductions to Inland Revenue.
He was charged under the Tax Administration Act.
Inland Revenue Department Group Manager (Assurance), Patrick Goggin said that companies employing staff are required to pay PAYE, Student Loans and KiwiSaver deductions by their due dates.
However, Edmonds consistently failed to do so in regard to P & F Developments Limited and Disraeli Limited, also known as JDV at the Rock, he said.
“Even though P & F Developments Limited regularly filed its returns for PAYE and Student Loans deductions between 2002 and 2008, it failed to make payments by their due dates totalling just over $550,000. Our tax system relies on people meeting their obligations, and we are continuing our focus on outstanding tax, including PAYE,” he said.
“Disraeli Limited also filed its returns for employee deductions between 2005 and 2008. However this company failed to pay just over $78,680 in PAYE, $5500 in Student Loans deductions, and $755 in KiwiSaver payments during that period.”
Both companies were liquidated in 2008.
“Edmonds used the money owed to IRD to pay his own salary, suppliers, and to keep those companies trading. Nevertheless, as sole director and shareholder, it was his responsibility to ensure they complied with their tax obligations and did not misappropriate employee deductions.
“IRD encourages owners and managers to contact us immediately if their business is unable to meet any payment obligations. By talking to us early, we can assist with a repayment arrangement,” Mr Goggin said.
Edmonds has made repayments although approximately $48,000 of debt is currently outstanding. He also failed to attend an interview with IRD officers and did not cooperate when asked for information.
As a result, a warrant for his arrest was issued in July 2010.
“Edmonds was not only cheating taxpayers when he misappropriated money owed to IRD but was also getting unfair advantage over other businesses and individuals in the hospitality sector that play by the rules,” Mr Goggin said.
An Inland Revenue Press Release
