Wellington Pillow Talk brothel owner sentenced for tax evasion

Zhi Rong Zhou owned the brothel Pillow Talk. Photo / File

A Wellington brothel owner has been sentenced to almost a year of home detention for tax evasion.

Zhi Rong Zhou owned Pillow Talk, among a number of other businesses and four properties, worth $4 million.

After an investigation in 2020 it was found two of the properties were rented – but no rental income was declared.

At the brothel, he hired workers, advertised them, managed bookings and took a third of the workers’ earnings, but failed to account for this business activity so he could evade income tax and GST.

The total sum was $663.513.83 - made up of $183,682.04 in income tax, $452,834.01 in GST, and $26,997.78 in Working for Families Tax Credits.

Zhou had been receiving an income-tested benefit and receiving Working for Families Tax Credits throughout the investigation.

He has already repaid $300,000 but was court-ordered to pay a further $150,000 in reparations and must do community work.

He pleaded guilty to the charges in August 2022 and was sentenced in the Wellington District Court on May 12.

Inland Revenue says although most people are honest and pay their taxes those who intentionally avoid paying tax or claim money they are not entitled to are robbing honest people of services they might have had.