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

 

Stats NZ: Largest Drop In Terms Of Trade In A Decade As Dairy Export Prices Sour

Lower export prices for dairy, meat, and logs in the September 2020 quarter led to the biggest drop in terms of trade since June 2009, Stats NZ said today. Export prices fell in the September 2020 quarter, down 8.3 percent from its highest ever ... More>>

ALSO:

Stats NZ: Election Boosts October Job Numbers

Job numbers were boosted by general election staff in October 2020, along with rises in the manufacturing, retail, and hospitality industries, Stats NZ said today. Filled jobs rose by 27,667 to 2.2 million in October 2020 compared with September, after ... More>>

Government: New Year Border Exception For Seasonal Workers In The Horticulture And Wine Industries

2000 additional RSE workers to enter New Zealand early next year employers must pay these workers at least $22.10 an hour employers will cover costs of managed isolation for the RSE workers RSE workers will be paid the equivalent of 30 hours work a week ... More>>

ALSO:


Media: Discovery, Inc. Completes Acquisition Of New Zealand’s Mediaworks TV Ltd

Auckland, New Zealand, December 1, 2020 - Discovery, Inc. (“Discovery”), the global leader in real-life entertainment, has completed its acquisition of New Zealand’s leading independent free-to-air commercial broadcaster, MediaWorks TV Ltd, now operating ... More>>

Department Of Conservation: Big Year Underway At Albatross Colony

Familiar faces are returning for the new season of Royal Cam, with a big breeding year underway for the toroa/northern royal albatross colony on Otago’s windswept Pukekura/Taiaroa Head. More than 120 albatrosses, a taonga species, have returned ... More>>

Real Estate: ASB Survey Reveals Majority Of Kiwis Expect House Prices To Keep Climbing

ALSO:

House price expectations are soaring as New Zealand’s housing market shifts up a gear. But stretched affordability is putting a dent in perceptions of whether it’s a good time to buy. While Kiwis reveal they do expect interest rates to fall further. ... More>>

Stats NZ: Births And Deaths: Year Ended September 2020

Births and deaths releases provide statistics on the number of births and deaths registered in New Zealand, and selected fertility and mortality rates. Key facts For the year ended September 2020: 57,753 live births and 32,670 deaths ... More>>

ALSO: