Tax Offender used New Identity to obtain GST Refunds
A Hamilton man who used a new identity to create and register three bogus companies as a front to obtain GST refunds has been sentenced to two years and 10 months in jail.
Andrew Skipper Kendell was sentenced in the Hamilton District Court today after admitting four representative charges of GST fraud.
“Mr Kendell knew he wasn’t entitled to this money. He deliberately filed 41 GST returns for himself and through his companies to obtain $153,000 in refunds,” said Jonathan Matthews, Assurance Manager, Investigations.
“This was a planned attempt to steal from the public purse. What makes it worse is this is the second time he has attempted this method to cheat on tax.”
“The sentence shows how seriously the courts view this sort of premeditated offending. Our tax system relies on the honesty of taxpayers, and when someone claims money they are not entitled to they're taking money from services like schools and hospitals,” Mr Matthews said.
Kendell registered for GST in December 2004. In June 2006 Inland Revenue began an investigation into his activities after he filed a suspicious GST return. Then, when he failed to supply supporting documentation, Inland Revenue further investigated Kendell’s activities.
It transpired that Kendell had set up three companies, SKP Construction, Tuatara Farms and OMS Performance for the sole purpose of claiming GST refunds. When investigators examined the books of each company there were no income or business expenses found in the corresponding bank statements, only private expenses appeared.
After further investigation, Inland Revenue found Kendell had another identity. He was born Andrew John Munsor Caddy, but changed his name by deed poll after a previous Inland Revenue investigation.
Under the name Caddy, Kendell had incorporated eight companies solely for the purpose of claiming GST refunds. Kendell had been bankrupted twice under the name of Caddy.