A former Kerikeri man highly skilled in accounting
and information technology who devised a tax evasion scheme involving Maori
trusts has been sentenced to three and a half years in jail.
Timothy Vivian Meredith was sentenced in Whangarei District Court on tax
offences totalling nearly $500,000 relating
to a number of businesses.
Inland Revenue’s Group
Manager Investigations and Advice, Tony Morris, said Meredith used the Nga Uri
O Tupoto Incorporation bank account with three others to effectively ”wash” his and their income from various
businesses to evade tax.
“Meredith devised a
scheme contracting participants ‘personal services’ through the incorporation.
No income tax or GST returns were filed and Meredith effectively washed the
income through the bank account and it was used by the participants for their personal
living expenses,” Mr Morris said.
Meredith knew he was
required to file his income tax and GST returns and was aware of the
consequences of not doing so, Mr Morris said. He was previously prosecuted in
2007 and made bankrupt in 2008 for failing to file tax returns for an
accounting and business mentoring service.
“We take this type of activity extremely seriously
and continue to use new tools to identify and
combat patterns of offending like this.
“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 Meredith who think
they can get away with ripping off decent New Zealanders.”
The tax Meredith evaded
paying would have funded essential services that all New Zealanders benefit
from such as schools, roads and healthcare.
Meredith has been declared bankrupt for the second
time.
