The Tauranga District Court sentenced a 37-year-old woman on June 28, 2012 to undergo a prison term of two years and three months on proven charges of tax evasion.
A jury found Lisa Lee Hilda Lamelangi from Katikati guilty on 31 charges of failing to deduct PAYE, 17 of evading the assessment of GST and three of evading assessment of income tax, accounting for $167,000.
She was also ordered to pay reparation of $10,000.
According to the Inland Revenue Department (IRD), Lamelangi and her late husband registered a partnership for GST and income tax in August 1999.
The Matamoana partnership, which listed its business activity as agricultural services, registered for PAYE as an employer a month later.
IRD audited the partnership in 2000 and 2001 and educated the couple on their tax responsibilities.
The couple ceased trading on March 31, 2001, leaving the partnership with tax debts of $24,110, which were written off under hardship provisions.
Between 2004 and 2007, Lamelangi issued invoices under the Matamoana partnership totalling $623,667. This partnership was not registered for GST, income tax, or as an employer and hence IRD estimated an evasion amounting to $167,000.
Inland Revenue Department (IRD) Group Manager (Assurance) Patrick Goggin said that Lamelangi had admitted during investigation that she had used most of the unpaid tax to pay back a $60,000 loan and sent some to families in Tonga.
He said that the jail term reflected the seriousness of such offences.
“She deliberately set out to avoid her tax responsibilities and take advantage of other taxpayers who are doing the right thing by paying their fair share.
“Tax cheats put the responsibility on others to pay for the services that the community needs, such as schools, hospitals and roads, and that they expect to use themselves,” he said.
Source: Inland Revenue Department
