Christchurch businessman jailed for not paying tax

Inland Revenue says the businessman "abdicated his responsibilities" in not paying the $200,000 in tax. Photo / File

A Christchurch businessman has been jailed for just over two years for not paying tax.

Raymond Martin Kesha owned Be Smart Accounting and Be Smart Group but didn't pay almost $200,000 in deductions over five years.

The deductions were supposed to be for staff's income tax and their KiwiSaver and student loan contributions.

Inland Revenue says that Kesha was sentenced to 25 months jail in the Christchurch District Court today.

Inland Revenue's collections group manager David Udy said Kesha actively abdicated his responsibility.

"He was given every opportunity and warning that this tax needed to be paid and had the consequences explained for not following the law.

"Kesha admitted to us that he knew PAYE was not being paid but thought that the business would be able to trade out of its cash flow issues.

"His responsibility to do the right thing by his staff didn't end following the liquidation of his businesses and we're pleased the court has recognised this in handing down this jail sentence."