Nicknamed the "Money Man", Mohammed Wasim has been sentenced to five years and nine months for his part in a $15 million tax evasion.
The Wainuiomata orchard worker was sentenced today on 81 counts of evading an estimated $15,080,861 worth of GST, PAYE and income tax in the
Tauranga District Court.
Inland Revenue is welcoming the sentence that will require Wasim to serve a minimum non-parole period of three years.
The $15 million evasion is the largest to hit the horticulture industry, said an IRD spokeswoman.
The scheme involved horticultural contractors evading tax by claiming that they subcontracted work to another company.
The company - set up by associates of Wasim - would issue an invoice for the work but pay the money back to the contractors via Wasim, allowing the contractor to evade GST, PAYE and income tax.
The court heard how Wasim recruited young agricultural workers to set up the companies and register for tax.
A spokeswoman for the IRD confirmed that three more prosecutions would follow but that number could be increased.
Inland Revenue Assurance Manager Raju Budhia said the sentence was a good one for the horticulture industry as a whole because contractors who pay taxes find it hard to compete against those who don't.
Mr Budhia said that Inland Revenue has the skills and resources to detect taxpayers trying to evade paying tax.
"We use a wide range of sources and have extensive knowledge of profit levels in various industries," Mr Budhia said.
