Household remedy firm Rawleighs has been fined $150,000 by a judge for evading GST and income tax, despite being in liquidation.
The Porirua-based company, known for its medicines and other products, has been in liquidation for four years after the Rawleigh family lost control of it.
It had been owned
by Beverley and Terry Rawleigh, the grandson of American founder Bill Rawleigh.
A new company, Rawleigh (2004) Ltd, has taken over the business and continues to sell its products door-to-door and over the internet.
Wellington District Court judge Andrew Becroft yesterday convicted the company and ordered it to pay $150,000 reparation after hearing from the Inland Revenue Department, the sole creditor, and the lawyer for the liquidator, Peter Churchman, who had agreed on what the penalty should be.
Mr Churchman told the judge it was one of the few cases he had been involved in where both sides were in agreement.
The company pleaded guilty to 28 charges of knowingly providing false tax returns intending to evade taxation.
The total GST and income tax evaded came to $741,083.
The liquidators had paid IRD back $320,158 before the hearing.
Terry Rawleigh and former company accountant Bill Duncan faces charges in relation to tax offences but have not had court hearing dates yet.
- NZPA
