A Canterbury-based accountant extradited from Australia has been sentenced to three years and three months in prison, after pleading guilty to tax evasion, tax fraud and theft involving over $500,000.
Grant Perry McGowan was sentenced in the Canterbury District Court on February 4, after he pleaded guilty on 35 charges of failing to deduct PAYE, 19 charges of providing a false document, and 22 charges of theft by a person in a special relationship.
Inland Revenue Department (IRD) Group Manager (Investigations and Advice Patrick Goggin), said that Mr McGowan deliberately avoided his tax responsibilities between 1998 and 2007 and took advantage of his clients by involving them in a loss selling scheme that he knew to be illegal.
“Mr McGowan abused the relationship he held with his clients and the trust they placed in him by claiming tax refunds on their behalf and depositing them into his personal account. He also used funds intended to pay his clients tax bills for his own benefit,” Mr Goggin said.
“Between March 2001 and May 2002, he convinced a number of his clients that they could reduce the amount of income tax that they needed to pay by purchasing tax losses. McGowan knew this activity was illegal and as a result, his clients lost almost $448, 000,” he added.
Mr Goggin said that he also failed to file PAYE returns between 2004 and 2007 on behalf of his companies’ employees and did not return their PAYE tax.
In 2006, he misappropriated over $120,000 that clients intended to pay IRD.
“Mr McGowan’s offending was on the severe end of the scale, which led to his extradition from Australia to face these charges. This case is another reminder that Inland Revenue will catch those who are dishonest and deliberately non-compliant and he now faces the consequences of his actions,” Mr Goggin said.
Inland Revenue Department Press Release
