Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Former business man denies hardworking NZers of key services

7 August 2014

Former business man denies hardworking New Zealanders of essential services

A retired Whitianga property developer has been sentenced after pleading guilty to stealing taxpayers’ money that he admitted he knew he was not entitled to.

Inland Revenue Group Manager for Investigations and Advice, Patrick Goggin said Michael Raymond Holmes was a tax cheat who deliberately tried to beat the system and deny hard-working New Zealanders.

“Holmes knew what he did was wrong but continued to use his companies to evade paying $775,000 of tax for four years. By stealing taxpayers’ money from Inland Revenue he attempted to cheat those of us who abide by the rules. The money he claimed is used to pay for essential services like our schools and hospitals.

“Holmes registered three of his businesses for GST and used them to buy further commercial buildings and units. When some of his purchases did not go through, he still claimed the GST on them,” said Mr Goggin.

One of Holmes’ companies, Danyon Investment Limited entered into a purchase agreement on an Auckland property which resulted in him receiving a GST refund of $300,000. In June 1998, investigations by Inland Revenue found the purchase had not in fact gone ahead.

“Holmes stated he was aware the GST should have been returned but was struggling with financial difficulties,” said Mr Goggin. “He also used another of his companies, Avila Property Investments Limited to buy ten units for which no GST was paid on the sale of these either,” he said.

This pattern of offending continued and Holmes used his third company, Westvue Property Investments Limited to buy another Auckland property.

“Holmes knew this purchase never went through but instead of notifying Inland Revenue, he banked the cheque and spent the money,” Mr Goggin said. “This was blatant tax evasion by Holmes who was fully aware that what he was doing was wrong.

“Our tax system is one of voluntary compliance and the majority of New Zealanders who pay their fair share can be confident that those who deliberately try and cheat will be caught and face the consequences,” he said.

Holmes was sentenced to ten months home detention at at Hamilton District Court yesterday and ordered after pleading guilty to eight various charges in relation to tax evasion.

He was ordered to to pay reparation of $252,649.00. The remaining amount was not able to be ordered by the court as Holmes owned no assets in his own name or they were held in a Trust.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news