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Christchurch Man Sentenced On Tax Offences

Contributor:
Fuseworks Media
Fuseworks Media
Christchurch Man Sentenced On Tax Offences

22 May 2009 - A Christchurch taxi operator has been sentenced to 12 months home detention for failure to account for PAYE deductions of more than $300,000.

Gary Keith Gray was sentenced today in the Christchurch District Court after earlier pleading guilty to 30 charges of failing to pay employee deductions to Inland Revenue.

Gray admitted using the money to pay other creditors.

Inland Revenue Manager Investigations, Assurance, Lynley Sutherland, welcomed the sentence.

"It shows the courts are prepared to take a firm line with people who deliberately dodge their tax obligations. After all, taxes help pay for important community services like hospitals, schools, and police."

"Failing to account for PAYE is especially serious, because the money is held in trust on behalf of employees. Employers aren't entitled to use it for other purposes," said Ms Sutherland.

Gray originally ran his taxi business through Cabbie Leasing Ltd. Between April 2006 and March 2008, Cabbie Leasing was liable for employee deductions of $276,778.89. Most of that has not been paid.

Another company controlled by Gray, Specialist Transport Solutions Ltd, took over the PAYE responsibilities from April 2008. This company was liable for employee deductions of $36,594.17, most of which have now been paid.

At sentencing, the total amount overdue was $288,693.79, after taking into account interest and penalties, and payments Gray subsequently made. The judge ordered Gray to make reparation of $312,000.

Gray has a previous conviction for failing to file tax returns.

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