A Wellington security company director who evaded paying
nearly $1 million in tax has been sentenced to eight months’ home detention.
Paul Cornel Coffey was sentenced in Wellington District
Court today after being found guilty of 79 tax offences relating to two
security companies.
Inland Revenue’s Group Manager Investigations and
Advice, Tony Morris, said Coffey was clearly aware of his tax obligations, but
deliberately ignored them. He didn’t file GST returns and failed to pass on PAYE
deductions from his employees’ wages during a three-and–a-half year period.
“Coffey simply decided he didn’t have to pay
his fair share of tax like everyone else, and pocketed the GST he charged his
clients and his employees’ PAYE. He used this money to live the high life, spending
up large on overseas travel,
restaurant meals and fast cars, including $165,000 on an Aston Martin,” said Mr
Morris.
“Coffey’s
actions completely undermine our tax system. While the majority of taxpayers do
the right thing, there is a minority who think they can get away with ripping
off honest New Zealanders.
“The tax
Coffey refused to pay would have gone towards vital government services that we
all rely on, such as hospitals, schools, roads and welfare,” said Mr Morris.
The core tax he failed to pay was just under
$900,000, but amounted to more than $1.5 million including penalties and
interest.
Coffey has also been ordered to pay $20,000 in
reparation and serve 280 hours of community work. The offences occurred between
January 2008 and June 2011 and related to security companies trading as IMS and
Alligator.
Media
contact:
Pete van Schaardenburg
04 890 1698, 021 348 696
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