Accountant Jailed For Exorbitant Tax Frauds

November 4, 2010 New Zealand Taxation

Cellblock DoorAn Auckland based accountant has been sentenced to two and a half years of jail time, after being found guilty of committing or being connected to 74 charges of tax fraud and evasion.

James Colin Raea has been a member of the New Zealand Institute of Chartered Accountants for 12 years, in that time he has allegedly been personally involved in tax fraud worth NZD 312 600, and an additional NZD 864 049 through companies he was involved with. Recently, at the Auckland District Court James Colin Raea admitted to 41 charges involving Goods and Service Tax (GST) and income tax, and sixteen similar charges for a company in which he was the sole-director. James Colin Raea chose to defend himself against an additional 31 charges, but was still found guilty.

James Colin Raea is alleged to have committed a series of his tax offenses through three companies in which he was the sole-director: Tuscany Way Limited, Anvil Holdings Limited, and Te Atatu Projects Limited.

The Inland Revenue Department (IRD) has already recovered NZD 280 000 from James Colin Raea’s debts. However, no money has yet been retrieved for tax debts incurred by his operating companies.

Jonathan Matthews, Investigations Manager of Assurance at the IRD, stated that the New Zealand courts take “a dim view of professionals like Mr Raea,” who use their extensive knowledge of the tax system for illicit personal gain.

Photo by C. Young Photography