A Tauranga woman who created an elaborate scheme to falsely claim more than $3 million in tax refunds and tax credits has been jailed.
In the District Court in Tauranga today Karina Charmaine Knedler, 31, was sentenced to prison for three years and seven months.
Knedler was sentenced on 19charges including using a document with intent to obtain a pecuniary advantage, obtaining by deception and using forged documents.
The charges mostly related to false GST refund claims for several fictitious businesses that never actually traded.
Inland Revenue group manager of investigations and advice Patrick Goggin said Knedler created an extremely complex scheme to rip off taxpayers.
From 2014 to 2016, Knedler filed faIse GST returns on behalf of Fitonez Limited, claiming a refund was due.
In total, 21 fraudulent GST returns were filed, and the defendant provided forged invoices and bank statements to support the claims.
Some of the refund claims related to fictitious property transactions in the millions of dollars.
Mr Goggin said Knedler was "quite relentless in her pursuit of money to which she wasn't entitled."
"Even when returns were being questioned, she produced numerous forged documents and conflicting explanations to back what became an increasingly elaborate web of deceit."
"This defendant's behaviour clearly showed brazen disregard for the tax system. She thought it was fine to repeatedly try to rip off millions in taxpayers' money that goes towards funding vital social services.
"She used the money she received to fund overseas travel, construction of a residential property and costs associated with setting up her business activities, among other things. In short, she showed utter contempt for honest New Zealanders who do the right thing and pay their fair share of tax."
While Knedler was being investigated over Fitonez Limited, she started a series of new fake companies set up using different personal identities.
In addition to the GST offences, Knedler made false Working for Families tax credits claims.
Inland Revenue would be exploring every available action to recover the money Knedler had stolen from taxpayers, Mr Goggin said.
