The former boss of Auckland's Heart of the City organisation has pleaded guilty to tax evasion of nearly $2 million.
Alex Gordon Swney, 57, appeared at Auckland District Court this morning where he admitted charges laid by the Inland Revenue Department.
The 39 charges the department initially laid were replacedby four representative charges. The charges covered $1.8 million in unpaid taxes.
It is alleged Swney also owed $1.4 million in penalties and interest.
He denied the charges when he appeared at Auckland District Court in October and his then lawyer, David Jones, QC, indicated the matter would likely go to judge-alone trial but new defence counsel Murray Gibson entered guilty pleas on behalf of his client today.
Last month Heart of the City's board also announced it had launched civil proceedings against Swney.
The company - registered by Swney in 1994 - confirmed an independent investigation had been completed by McGrathNicol and civil action had been taken as a result.
Chairman Terry Gould said they had also obtained interim asset freezing and disclosure orders from the court. Heart of the City had its AGM at the end of October, at which Mr Gould told stakeholders he was in constant communication with the Serious Fraud Office.
"About six weeks ago my intention was to focus almost entirely on our great work and many achievements but the events of the last couple of weeks have obviously changed that," he said at the meeting.
"The recent termination [of Swney's contract] and associated revelations and allegations have clearly been extremely disappointing and gravely concerning."
Swney will be sentenced in April.
Mr Gibson said his client was not a flight risk but details of his bail had to be negotiated with prosecution.
Judge Grant Fraser said the "outcome here is inevitable".
