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Prison for tax evasion
Wai Kheong Kong was sentenced to 2 years 1 month in prison when he appeared before Judge Mathers in the Auckland District Court on 13 December. He had earlier plead guilty to 16 charges of tax evasion and 84 charges of taking PAYE from his workers’ wages but not passing it on to Inland Revenue.
Kong was involved in architectural work in the Auckland area through his company Landmark 2022 Ltd, previously trading as Arris Architecture Ltd. Landmark was put into liquidation in March 2023.
Judge Mathers noted the seriousness of the offending and said prison was the only sentence appropriate given the dollar amount involved ($1,128.233.11), how long the offending went on for (7 years) and the exotic, luxury vehicles Kong purchased.
While in business, the only tax payment Kong made was in February 2023, when he paid $125,000 toward the company’s PAYE debt. It was only made once the company was facing liquidation. No further money was recovered from the liquidation.
The tax not paid by Kong was withdrawn from the company’s bank account and used to buy several expensive vehicles including two Mercedez-Benz wagons, a Bentley convertible, and a Porsche 911 Turbo.
Judge Mathers also noted Kong’s previous convictions for similar offending.
New Zealand uses a self-assessment tax system that is based on voluntary compliance. For the tax system to work (including the prompt provision of refund to honest taxpayers) Inland Revenue trusts individuals to provide it with accurate information
Kong admitted he understood his obligation to pay tax, and the prosecutor told the court the offending was brazen and showed a high level of entitlement on Kong’s part.
As well, Kong was trusted by his employees to account for their PAYE deductions on their behalf (including KiwiSaver, Student Loan repayments and other associated tax types).
Last updated:
15 Dec 2024