A Government agency has banned Auckland property developer, model and former policeman Jason Peters from being in business for reckless trading.

Mr Peters, a distant relative of former Foreign Affairs Minister Winston Peters, is the brother of property magnate Jamie Peters.

Peter Barker, the Deputy Registrar of Companies, banned Jason Connell Peters and Megan Mary Francis Peters from acting as company directors or managers for four years.

Read the full article online >>> NZ Herald – nzherald.co.nz

The Deputy Registrar of Companies, Peter Barker, has banned Jason Connell Peters and Megan Mary Francis Peters from acting as company directors or managers for a period of four years effective from 28 July 2008. The maximum term under Section 385(3) of the Companies Act 1993 is five years.

The Peters’ were property developers for a number of years. The Peters’ were the directors of 114 Dominion Rd Limited, Landgroup Properties Limited, Bremen Rural Limited, and Tuuson Enterprises Limited (all in liquidation).

The National Enforcement Unit of the Ministry of Economic Development (NEU) submitted a report to the Registrar of Companies alleging that the Peters’ mismanaged the companies and contributed to their failure.

The issues of mismanagement include: reckless trading; breach of directors duties; failure to pay funds due to the Inland Revenue Department (IRD); and the inappropriate assignment of related party debts.

Examples of this include the Peters’ acting recklessly by failing to arrange finance before entering into an unconditional contract and having unreasonable expectations that they could secure finance to settle the purchase. The Peters’ claimed a GST refund on a property purchase before finance had been arranged, then paid it away from the company despite not having the means to complete the purchase.

In their defence the Peters’ submitted that the problems occurred as a result of commercial and market factors beyond their control.

Prohibition under Section 385(3) is primarily meant for the protection of the public. Mr. Barker considered the failings of the Peters’ to be serious and that there is a serious risk for creditors in the future unless a substantial period of prohibition was imposed.

In his minute Mr. Barker stated that “there is nothing that the Peters’ can say which can satisfy me that [this] is not damning conduct of the directors” and that the manner in which it was dealt with is particularly reprehensible.

Mr. Barker advised that “the reason the non payment of the IRD is serious is not because the creditor happens to be the Crown. It is because it demonstrates that the directors have either no understanding, or have deliberately ignored, their obligations to the creditors…It is a fundamental requirement of directors that the companies comply with the law and that they are worthy of the trust placed on them.”

Source: New Zealand Companies Office Media release dated 19 December 2008

According to an Inland Revenue Department (IRD) media release, an Invercargill accountant faces jail time for tax evasion.

Invercargill accountant, Warren Dean Haggerty was sentenced to two and a half years jail time after he admitted to or was found guilty of a number of charges. Warren Dean Haggerty admitted to misappropriating $302,365.82 worth of funds. Further, he admitted to misleading and altering tax statements of two clients as to their tax position, resulting in overpayments, which he then withdrew for his personal use. He admitted to gaining use of $115,000 of funds in this manner. It was proved by the court that Warren Dean Haggerty deliberately mislead his firm as to the location of the misappropriated money.

Read the full article online >>> New Zealand Taxation

A Tauranga tax accountant, sentenced to 10 months’ home detention for $284,0000 worth of tax fraud, owes more than $800,000 to Inland Revenue after interest and penalties were added to his bill.

Kevin Wayne Frazer, 63, a former director of Total Taxation and Accounting Services, pleaded guilty last month to 68 charges of tax evasion, involving unpaid income tax, GST, PAYE, fringe benefit tax and student loans.

Read the full article online >>> Bay of Plenty Times

A host of big-name retailers could soon join a growing list of smaller operators being forced into receivership because of choking inventory levels, say retailers and insolvency experts.

The warning comes as tough trading conditions claimed another victim in the form of clothing accessories provider Tie Rack, which was placed into liquidation last week by Corporate Finance.

Read the full article online >>> Business Day – stuff.co.nz

A Tauranga accountant has been sentenced to ten months home detention on tax evasion charges involving more than half a million dollars.

Kevin Wayne Frazer was sentenced in the Tauranga District Court today after pleading guilty to 68 charges, involving unpaid income tax, GST, PAYE, fringe benefit tax and student loans.

He was also ordered to do 250 hours community work.

Much of the unaccounted money appeared to have been used by Frazer for personal expenditure.

Inland Revenue Manager Assurance, Investigations, Richard Philp, said those working in the tax system are expected to uphold its integrity.

“Accountants have an extensive understanding of the tax system, therefore those who cheat it should expect the consequences.

“New Zealand’s tax system is based on voluntary compliance. It relies on the honesty and integrity of the tax professionals working in the system,” said Mr Philp.

Frazer registered Total Taxation and Accounting Services in 1993 for GST, PAYE and income tax.

Until mid-2001, Inland Revenue received GST, PAYE and income tax returns from the company as required.

But since then, the company did not file GST or income tax returns, and payment was not made on a number of monthly PAYE returns.

An audit by Inland Revenue found payment had not been made for income tax of $46,330, GST of $384,356, PAYE of $105,965, FBT of $2,468 and student loans of $597.

When interviewed, Frazer admitted he was aware of his tax obligations and responsibilities and undertook to file outstanding returns and to keep up-to-date with his current returns. However, he failed to do so.

Including interest and penalties, Frazer owes Inland Revenue a total of $806,096.

Source: Inland Revenue

KIWI kickboxing legend Ray Sefo is in a legal battle over rent arrears on a gym which has already seen his one-time manager and former fight promoter Dixon McIver take a financial knockout blow.

Sefo, a five-time Muay Thai world champ, and McIver guaranteed a lease by a company they were shareholders in on the Ray Sefo Fight Academy/Planet Health gymnasium in Henderson, west Auckland.

But the gym has closed, the company has gone into liquidation, and Taylor Construction, which owns the building, was awarded a judgment at Waitakere District Court for $72,614.46 against the pair and their company.

Read the full article online >>> SundayNews

New Zealand Companies office records for PLANET HEALTH 2003 LIMITED show that at the time of liquidation Hugh Dixon MCIVER was the sole director.

A failed Marlborough building company has gone into voluntary liquidation owing creditors about $640,000.

Former David Reid Homes Marlborough franchisees Bruce and Susanne Bussells’ company, SBB Construction, ceased trading in October.

The company’s lawyer, Wain and Naysmith’s Marty Wilson, said the company went in to voluntary liquidation on Monday.

Read the full article online >>> The Marlborough Express

New Zealand Companies office records for SBB CONSTRUCTION LIMITED – previously DAVID REID HOMES (MARLBOROUGH) LIMITED changed on 10 October 2008

In Liquidation 08 December 2008

An Invercargill accountant has been jailed for two and a half years on charges of tax evasion.

Warren Dean Haggerty was sentenced today in the Invercargill District Court after last month admitting 54 charges involving $302,000.

The charges included filing false returns, using a document for pecuniary advantage, and money laundering. They related to offences committed between 2003 and 2006.

Inland Revenue Manager Investigations, Assurance, Lynley Sutherland, said Haggerty’s sentencing sends a strong message. “Accountants have an extensive understanding of the nature of New Zealand’s tax system and those who cheat it should expect serious consequences.”

“Professionals working in New Zealand’s tax system are expected to act honestly and uphold its integrity” Ms Sutherland said. “Inland Revenue and the Courts take a dim view of those such as Haggerty who betray their professional obligations for personal gain and benefit.”

Haggerty had worked for an Invercargill accountancy firm for more than 20 years. Between 2003 and 2006 he filed false income tax returns for himself and his wife. He also changed the amount of tax liability on returns he filed for two client companies, resulting in them making overpayments in provisional tax.

Haggerty arranged for the refunds from Inland Revenue to go to his own personal account.

He also disguised the ownership of the refund cheques, which he used for his own personal spending.

Source: Inland Revenue

A Napier dairy owner, who hid income of nearly half a million dollars to evade tax, has been sentenced to six months community detention.

Farrukh Hashmi was sentenced in the Napier District Court today after earlier admitting 37 charges of failing to pay income tax and GST of $195,000.

Inland Revenue Assurance Manager, Investigations, Richard Philp, said the courts view tax evasion very seriously.

“If someone evades tax, then everyone else misses out. People who rip off the system like this are robbing the community of funds for schools and hospitals.”

“Businesses that act like this are also making it very hard for honest businesses to compete, and we’re committed to strong action in these cases to ensure a level playing field,” said Mr Philp.

Hashmi had unexplained cash accumulated both before and after his purchase of Napier’s Carlyle Street Store in January 2004.

The bulk of the money was used to buy rental properties.

When interviewed, Hashmi told Inland Revenue he wasn’t aware of his responsibilities. He said: “Where I come from, we didn’t have to pay tax.”

He admitted suppressing income of $487,000 over four years.

Hashmi has paid Inland Revenue $165,000 after selling some property, but still owes more than $220,000 in outstanding tax, student loan repayments, penalties and interest.

He has also been ordered by the court to pay reparation of $100 per week.

Source: Inland Revenue