Tax evader sentenced to home detention

File photo / NZH

A Wellington businessman who admitted avoiding paying nearly $1.5 million in tax has been sentenced to 12 months' home detention and ordered to do 350 hours' community service.

Michael Edwin Kooiman, 48, who is bankrupt, was sentenced today in Wellington District Court.

Inland Revenue (IRD) estimated Kooiman avoided paying tax of more than $1,465,000, of which $837,000 was still owed to IRD.

IRD recovered more than $1 million in unpaid taxes from Kooiman's companies by taking control of the cashflow of one of his businesses. This amount included interest, penalties and tax arrears beyond the scope of the prosecution.

Kooiman admitted 77 charges of aiding his companies to evade tax and evading his personal taxes over a number of years. He had dissolved companies and set up new ones, known as phoenix companies, in an attempt to avoid paying tax, according to IRD investigations.

Kooiman was involved in a number of businesses, including building, construction, property development, commercial fishing and a wholesale bakery.

Kooiman made a habit of running his businesses without paying GST, PAYE or income tax, IRD assurance manager of Investigations Patrick Goggin said.

"Our tax system relies on honesty and compliance and the sentence sends a clear message to others trying to cheat the tax system -- you will get caught and face the consequences."

- NZPA