Firm's tax dodging ironic: Judge

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.
Frazer appeared before Judge Peter Rollo in Tauranga District Court yesterday and was sentenced to 10 months' home detention and 250 hours of community work.
Judge Rollo said given Frazer's personal circumstances, and his failing health, a sentence of home detention was appropriate.
But the judge said Frazer could easily have faced a jail term for his offending, which had spanned four-and-half years.
Judge Rollo said the irony was that while Frazer was filing returns on behalf of his clients, he deliberately failed to do so for himself and his company, which was now in liquidation.
Frazer registered Total Taxation and Accounting Services for GST, PAYE and income tax in 1993. Until mid-2001, Inland Revenue received the required returns.
But since that date, the company had not filed GST or income tax returns, and payment was not made on a number of monthly PAYE returns.
IRD records showed that Frazer was contacted many times by staff to remind him of his obligations and regular default notices were sent out with limited response.
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.
Frazer owes Inland Revenue a total of $806,096.
Much of the unaccounted money appeared to have been used by Frazer for personal expenditure.
A liquidator was engaged in April 2007 to wind up Frazer's business and he and his wife's home might have to be sold to offset some of tax debts.
Richard Philip, Inland Revenue's investigations assurance manager, said those working in the tax system were expected to uphold its integrity.
"Accountants have an extensive understanding of the tax system, therefore those who cheat it should expect to face 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."