Jail Time for $5 Million Tax Fraud

August 24, 2009 New Zealand Taxation  No comments

Two years and ten month worth of jail time has been sentenced to a Tauranga man responsible for over NZ$5 million in tax fraud.

Ahmad Bakhtiar, a Tauranga based agricultural industry worker, admitted to 64 charges of tax evasion and 22 charges of using falsified documents, in the Tauranga District Court.

Ahmad Bakhitiar evaded $5,185,441 worth of income tax, GST and PAYE throughout the time for which he was investigated. He managed this by establishing new companies which, for a fee, could provide false documentation and invoices for work which was completed by a different company. Ahmad Bakhitiar has been found to have created 14 companies in this manner. While it is claimed that he was at the head of the operation, Ahmad Bakhitiar is also claimed to have recruited individuals from Pakistan, India and Bangladesh in order for them to incorporate the companies and leave New Zealand before the Inland Revenue Department has had time to investigate any wrong doing.