Former New Plymouth retailer Jianbin Wang has been
jailed for 3 years 9 months for failing to declare millions
in cash takings, while his wife Fenglan Liu received 2 years 3 months in
prison.
The couple operated three low-cost Best 4 Less
retail stores in New Plymouth, Waitara and Wanganui, but failed to pay income tax
or GST on a large part of their takings between September 2007 and September 2012.
Inland
Revenue Investigations and Advice Group Manager, Tony Morris, said Wang
and Liu’s offending was a blatant case of people who foolishly think that they
can get away with not paying their fair share of tax.
“This is
tax evasion at the most extreme end of the spectrum,” Mr Morris said. “Our investigators have calculated that cash
sales in excess of $2.5 million weren’t declared over the five years of
offending. This meant the businesses evaded paying more than $1 million in tax.
“It also enabled
the couple to repay a $380,000 mortgage in just two years, all while they were claiming
Working for Families Tax Credits because of their supposed modest personal
income,” Mr Morris said.
Because the couple failed to declare the business’s
full earnings, Wang’s personal income tax liability was also significantly
under-reported. He evaded paying more than $1.1 million in GST and income tax,
and received more than $50,000 in Working for Families Tax Credits.
After Inland
Revenue commenced prosecution action against them, Wang and Liu sold their New
Plymouth home and Wang sold his three businesses, forwarding much of the
proceeds to bank accounts in China. They also withdrew large sums of cash from
ATMs and banks throughout the North Island.
“This sort
of despicable behaviour really undermines the tax system,” Mr Morris said.
“While the vast majority of taxpayers are doing the right thing, there are
people like Wang and Liu who think they can get away with ripping off decent
New Zealanders.
“The taxes
this couple didn’t pay to Inland Revenue would have gone towards vital
Government services, such as hospitals, schools and welfare,” he said.
Wang had earlier pleaded guilty in New Plymouth
District Court to 42 charges of personal tax fraud and 16 charges relating to
company taxes for Top International Trading Limited, but had disputed the
amount of the fraud. Liu was found guilty on 16 tax evasion charges but not
convicted in relation to the later alleged tax offences.
Media
contact:
Pete van
Schaardenburg
04 890
1698, 021 348 696
