A Hawke's Bay couple avoided paying taxes of about $1 million and are yet to be sentenced. Photo File
A Hawke's Bay couple avoided paying taxes of about $1 million and are yet to be sentenced. Photo File
Taxes totalling almost $1 million were avoided by a couple as they manipulated and falsified the operation of their businesses in Hawke's Bay.
The fraud lasting up to eight years was revealed in Hastings District Court this week when 56-year-old Rakesh Kumar and wife Nalini Kumar, 55, admitted their rolesby pleading guilty to tax evasion and false declaration charges.
They were remanded on bail for sentencing in the court on October 4, the Inland Revenue Department indicating it could be seeking reparation for the combined amount of $960,324.59.
The IRD began investigating after it discovered horticultural, restaurants, dairies and rentals belonging to and run by Rakesh Kumar were reported to be returning earnings well below those of comparable operations in Hawke's Bay.
While reporting losses, he was still buying new businesses, and bank records showed significant unexplained cash deposits, in his own account and accounts of some family members.
The IRD said Kumar paid cash under-the-table to employees who often weren't listed in staffing records supplied to the IRD, evading GST and PAYE payments totalling $833,294.99, mainly used instead to grow his own businesses.
His wife admitted filing documents evading taxes of $127,029.60.
