The company deducted PAYE, student loan repayments and KiwiSaver contributions but didn’t pass that on to Inland Revenue. Photo / File
The company deducted PAYE, student loan repayments and KiwiSaver contributions but didn’t pass that on to Inland Revenue. Photo / File
A banned company director on home detention for $550,000 in tax offending tried running a new company.
Hugh James Bevan Lloyd was the sole director and beneficial owner of Scanlan IT Staff Ltd, now in liquidation, and previously known as Lloyd Executive Limited.
Inland Revenue said Lloyd was sentenced inApril this year to six months’ home detention after a successful prosecution.
“In other recent similar court cases, the directors couldn’t run a new business because they were either bankrupt or in prison,” the IRD said today.
“This is the first case that IRD knows of where a director, when convicted and sentenced on tax charges, has looked to carry on trading a new company while serving a home detention sentence.”
Inland Revenue said a 2019 law change allowed the automatic ban but most people wouldn’t know they could be stopped from being a director because of tax offending.
Lloyd was banned from running a new company for five years.
Lloyd’s company was required to pay payroll tax but from October 2020 to May 2022, the company deducted PAYE, student loan repayments and KiwiSaver contributions from employees’ wages but didn’t pass that on to Inland Revenue.
