Tax dodger may be deported

The liability to deport would not be disproportionate to the gravity of the offending. Judge Tony Zohrab

A ‘‘well regarded’’ Nelson business owner could face deportation over convictions for tax evasion.

The woman, who has interim name suppression, and her partner were sentenced in the Nelson District Court yesterday after a jury in May found them guilty of filing false GST and income tax returns as they did not declare their cash sales.

They were each given six months home detention, and 120 hours community service.

Lawyer for the woman Luke Acland had applied to have some of his client’s charges discharged without conviction, as he feared his client, from Thailand, could be deported by Immigration New Zealand.

The pair had sold the business the offending was related to, to pay back the money owed.

The offending was over a sixyear period, and the IRD found they did not pay $47,000 in GST and $119,000 in income tax.

Crown lawyer Emma Riddell argued there was no doubt the pair knew what they were doing, and they should take responsibility for the offending. She said they did not disclose the cash sales to their tax agent, Colin Johnston, although she said he was ‘‘incompetent’’.

Lawyer for the male defendant Brett Daniell-Smith said the pair were given poor advice, and thought that cash was being recorded by Johnston.

The defence had argued the pair were naive to tax requirements in New Zealand, and engaged a professional tax agent who they had trusted to file correctly for them.

Daniell-Smith said the pair were a ‘‘hard-working, honest couple’’ working up to 12 hours a day in their business, and argued for a community service sentence.

Acland passed on references for the woman to the judge, stating she was ‘‘generally well regarded around town,’’ and the pair were ‘‘decent people’’.

Judge Tony Zohrab said the amount calculated that they did not pay was conservative, and the court would not know the true total.

He did not accept that the pair were ignorant of their tax duties, and despite not being from New Zealand, said ‘‘cash is a universal language’’.

He said their offending bordered on being serious and had deprived New Zealanders of public funds, and the pair needed to take responsibility for that. The deportation issue only related to the female defendant.

He acknowledged that while the tax agent could have been more proactive, it was up to the couple to pay their taxes. ‘‘The liability to deport would not be disproportionate to the gravity of the offending. Immigration should be told the full circumstances of what has happened.’’

However he said it was ‘‘not inevitable’’ she would be deported.

Speaking after sentencing, Johnston said he was ‘‘disappointed’’ the defence pointed the finger at him through the trial.

He said he had tried to help the pair.

Interim name suppression for the woman was sought until Monday evening while the defence considered an appeal.