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Student Gets Five Months Home Detention For GST Fraud

Fuseworks Media
Fuseworks Media
Auckland District Court
Auckland District Court

An Auckland student has been sentenced to five months home detention and ordered to pay reparation of $30,000 for GST fraud after being caught in a scheme to obtain money from Inland Revenue using dummy companies.

Bing Liu, was sentenced today in the Auckland District Court after admitting to 15 charges related to GST returns involving $44,350.

Liu, who is in New Zealand on a student visa, listed himself as a director for 10 companies registered with the Companies Office and filed GST returns for them.

"This was a case of deliberate planning designed to cheat the tax system," said Jonathan Matthews, Investigations Manager, Assurance.

"Mr Liu created fictitious sales and expenses for each of the companies and then filed GST returns from an internet caf. This was calculated to avoid detection, he knew very well what he was doing was wrong and now he's paying the price," Mr Matthews said.

"The tax system relies on honesty and compliance and this sentence should send a strong message to others trying to cheat the system."

Liu received GST refunds for the 10 companies, which were paid into bank accounts he set up and was the sole signatory for. The only transactions in the accounts were Inland Revenue refund cheques and withdrawals of those refunds in lump sums. No other business activity was recorded.

As part of his sentence Liu has to pay his reparation in four instalments within the home detention period.

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