Tax evader bought Porsche 911, Mercedes-Benz, Bentley convertible instead of paying IRD

A tax evader who decided to spend money on luxury cars instead of paying Inland Revenue has been imprisoned.

Wai Kheong Kong appeared before Judge Nicola Mathers in the Auckland District Court on Friday after evading more than $1 million in tax.

Inland Revenue said he had earlier pleaded guilty on 16 charges of tax evasion and 84 charges of taking PAYE from workers’ wages but not passing it on to Inland Revenue.

Financial statements seen by the Herald show Kong bought a 2007 Bentley Continental GTC Cabriolet, 2014 Porsche 911, and 2021 Mercedes-Benz G63 M-AMG.

Inland Revenue took a dim view of the Auckland businessman who splashed out on sports cars instead of paying his tax. Photo / NZME

Kong was involved in architectural work through his company Landmark 2022 Ltd, previously trading as Arris Architecture Ltd.

But Landmark 2022 was put into liquidation in March last year.

“Judge Mathers noted the seriousness of the offending and said prison was the only sentence appropriate given the dollar amount involved ($1,128.233.11), how long the offending went on for (seven years) and the exotic, luxury vehicles Kong purchased,” Inland Revenue said.

“While in business, the only tax payment Kong made was in February 2023, when he paid $125,000 toward the company’s PAYE debt. It was only made once the company was facing liquidation. No further money was recovered from the liquidation.”

Tax Kong did not pay was withdrawn from the company bank account and used to buy expensive vehicles including the 6-litre Bentley.

“Kong admitted he understood his obligation to pay tax, and the prosecutor told the court the offending was brazen and showed a high level of entitlement on Kong’s part,” Inland Revenue said.

“As well, Kong was trusted by his employees to account for their PAYE deductions on their behalf, including KiwiSaver, student loan repayments and other associated tax types.”

Kong was sentenced to two years and one month’s imprisonment.