Almost 6000 kilograms of loose tobacco was smuggled into the country in multiple lots, Customs says.
Almost 6000 kilograms of loose tobacco was smuggled into the country in multiple lots, Customs says.
A multi-million dollar tax-dodge has earned an Auckland businessman a jail sentence after he was busted smuggling more than 6000 kilograms of loose tobacco into the country from Tonga.
Sixty-year-old Mosese Vakapuna, along with his business JM Store, was convicted on 23 charges relating to defrauding the revenueof Customs when he evaded more than $10.3 million in import and excise taxes by smuggling the tobacco among food items.
He was sentenced to 28 months’ jail for his role in smuggling 5982 kilograms of loose tobacco when he appeared in the Auckland District Court today. JM Store was also fined $2300.
Customs began its investigation, named Operation Constrictor, after a seizure of black market “tapaka” or “Tongan chop” in October 2022, said Customs investigations manager Dominic Adam.
More than 550kg of loose tobacco was found among items such as frozen cassava, kava powder and taro products in the seizure.
A previous shipment, seized in November 2021, was also linked to the investigation with 510kg of tobacco hidden among food items intended for JM Store.
Overall, Operation Constrictor identified a total of 23 imports sent to the company over a 21-month period.
The investigation indicated the tobacco was destined for sale in NZ, particularly amongst Pasifika communities, and it had been smuggled in multiple shipments, Adams said.
Those thinking of avoiding taxes by smuggling goods into the country have been warned by Customs that "it’s only a matter of time before we come knocking on your door".
It’s not illegal to import tobacco in commercial quantities, but businesses and individuals need to declare it correctly, have the relevant import permits, and are liable to pay the taxes, he said.
“Customs’ message to businesses and opportunists who think they can get away with this type of crime is that – we are very keen to meet with you, and it’s only a matter of time before we come knocking on your door.
“You could lose everything, your business, your home, and your reputation as a respected member of the community – nothing is worth that risk.”
The tobacco was found among food items, including frozen cassava, kava powder and taro products.
If you know of someone or suspect someone who is dealing in illegal tobacco, Customs can be contacted on 0800 WE PROTECT (0800 937 768), a 24-hour confidential hotline, or Crimestoppers anonymously on 0800 555 111.
Cherie Howie is an Auckland-based reporter who joined the Herald in 2011. She has been a journalist for more than 20 years and specialises in general news and features.
