Christchurch man who kept $215,000 in employee PAYE is sentenced to home detention

A Christchurch man who failed to pay more than $215,000 in PAYE has been given home detention. Photo / NZME

A Christchurch man who kept more than $215,000 of workers’ PAYE has been sentenced to 10 months’ home detention.

Frederick Mario Mau Epiha pleaded guilty in the Christchurch District Court to 16 charges of aiding and abetting a company he set up to knowingly apply PAYE deductions.

Epiha incorporated Redemption Solutions Ltd (RSL) in May 2022 as an employment services company operating out of both Auckland and Christchurch.

He was the sole director of the company from October 22, 2022.

However, RSL was tax non-compliant from the outset and was placed into voluntary liquidation in April 2023.

Between May 2022 and March 2023, RSL was required to file PAYE returns each month. Inland Revenue said Epiha failed to pay the full amount between August 2022 and April 2023, leaving an unpaid PAYE of $215,043.24.

Inland Revenue said Epiha’s PAYE offending was deliberate, premeditated and repeated.

Epiha’s offending continued despite repeated warnings from Inland Revenue, and confirmation from Epiha that he knew RSL’s failure to pay its employees’ PAYE to the Commissioner was a criminal offence.

Inland Revenue said offences of this nature posed a threat to the integrity of the tax system and created an unfair financial advantage over other businesses in the same industry.

The court also heard of ‘phoenix-type behaviours’ by Epiha.

Before incorporating RSL, Epiha worked as a manager for Asia Pacific Group Limited (APG). He re-established APG’s business under a new company (RSL) without changing or addressing APG’s compliance behaviour.

Epiha was aware of APG’s tax arrears but incorporated RSL to take over APG’s trading business, continuing to operate it in a similar manner to APG.

In 2024, the director of APG, Melanie Tatana, was sentenced to three years’ imprisonment for aiding and abetting APG in failing to account for PAYE of $1,602,864.17.