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

 

Million dollar tax evasion couple sentenced

Million dollar tax evasion earns couple jail time and home detention


Nov. 14 (BusinessDesk) - Paying employees under the counter, failing to declare cash sales and reporting substantial losses to avoid both company tax and GST has landed a Hastings couple with prison and home detention sentences for tax evasion totalling more than $1 million.

Rakesh and Nalini Kumar operated Red Chilli Restaurants and Take Away in Taradale and Indian Palace Restaurant in Napier, and dairies in Hastings and Mount Maunganui and other businesses.

The Inland Revenue Department began investigating the couple's businesses after noting abnormally low cash sales at the Red Chilli restaurants between 2009 and 2015.

Indian Palace also had similar abnormally low cash sales between 2010 to 2015.

Rakesh Kumar faces a two-and-a-half year prison term after pleading guilty to providing false tax returns and evading tax totalling $833,249.99, while Nalini Kumar has copped a sentence of five months home detention and 100 hours of community work after pleading guilty to evading tax totalling $127,029.60.

The evasion consisted of a combination of paying employees in cash and not declaring their earnings to IRD, reporting substantial losses between 2010 and 2016 for income tax and GST purposes, and under-reporting cash sales.

“In one year, the companies’ tax returns stated less than 1% of its sales were cash sales, compared to the industry average of 30%. Both restaurants PAYE returns also understated staff numbers, with Indian Palace claiming only one employee over the busy Christmas holiday season in 2010-2011,” IRD spokesperson Karen Whitiskie said in a statement.

Meanwhile, the companies' bank records were showing substantial cash deposits.

“Defrauding Inland Revenue is not a victimless crime," said Whitiskie "It’s straight theft from the community. As the Court of Appeal has said, nothing is more corrosive than the sight of people apparently earning high income and evading payment of tax.”

(BusinessDesk)



© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Robertson Speech: Budget Sees Wider Debt Target

"New Zealand is well positioned to face this instability and uncertainty, but we are not immune from its impacts. Growth rates are set to be lower than we have seen in recent years..." More>>

ALSO:

Commerce Commission: Spark Warned Of Broadband Price Rise

The warning follows an investigation into representations Spark made on its website and in emails in August and September 2018, notifying in-contract customers receiving its copper-based broadband service of its decision to increase the price by $5 a month. More>>

Law Commission: Resist Rushing To New “Deepfake” Law

Artificial intelligence techniques can create massive volumes of fake audio, images and video that is incredibly convincing and near-impossible to detect... While it is tempting to respond with new law, the study finds that the long list of current legislation covering the issues may be sufficient. More>>

ALSO:

'Contrary To US Interests': US Lockout Sees Android Ditch Huawei

Effective May 16, 2019, the Bureau of Industry and Security (BIS) amended the Export Administration Regulations (EAR) by adding Huawei Technologies Co., Ltd. (Huawei) to the Entity List. More>>

ALSO: