Tax Adviser Sentenced for Tax Fraud

October 15, 2015 New Zealand Taxation

A tax adviser has been sentenced for a tax evasion scheme involving fictitious property sales and a series of fake businesses and invoices.

On October 14th the Inland Revenue Department issued a statement announcing that a tax advisor from the Lower Hutt who has been accused of tax evasion has now been sentenced to 10 months home detention for his actions.

The adviser, Patrick John Renshaw, pleaded guilty to 42 separate charges involving the non-payment of PAYE, and for filing false GST and income tax returns, which cumulatively amounted to tax evasion of approximately NZD 345 thousand.

Patrick John Renshaw constructed a web of fictitious transactions between a series of related entities, which were invoiced but with no payment or service actually taking place, ultimately allowing the entities to claim unearned tax refunds worth NZD 26,112.55.

He was also involved in claims for GST returns on five fake property purchases, which netted approximately NZD 155 000 in tax returns.

Patrick John Renshaw was also accused of not paying his employees’ PAYE deduction, totalling NZD 90 700.

Photo By: Brian Turner