In an effort to turn his worsening financial position around, the man turned to credit cards and drawing on facilities secured over his house and rental property.
He has since managed to refinance his properties and was securing a loan to help repay those he owed money to.
In his submission on the penalty he could face, the man said he regretted the situation, but at no time did he try to cover up his errors and he always filed accurate returns to the IRD.
The institute's board will make a decision on the penalty the man will face next March after he has had an opportunity to turn the business around and pay back debts.