Immigrant who faked identity fleeced IRD of over $100,000

An Indian immigrant used a fake identity and illicitly gained IRD numbers to fleece the Inland Revenue Department of more than $100,000 in unpaid taxes after setting up a fake company, Tauranga District Court has heard.

Company director Davinder Singh, 26, pleaded guilty to one count of tax evasion.

In February the IRD decided to audit Singh's company, Darms Horticulture.

It found that between November 20, 2003, and January 16, 2004, invoices in the company name to the value of at least $437,351 had been issued to other kiwifruit contractors, with the payments then received being cashed by Darm Singh.

No records of payments were received and the company stopped trading. Later inquiries found that Singh had created the false identity Darm Singh to evade tax and obtain credit by fraud.

The IRD estimated that Singh evaded paying $110,937.10 in PAYE and GST.

Singh will be sentenced on December 7.

Crown prosecutor Nick Chisnall told the court Singh arrived in New Zealand in 1998 and in November that year was issued with an IRD number.

In November 2002, Singh applied for and was issued with another IRD number.

This time his application included a copy of an Indian passport and a photograph of Singh with a date of birth. Police later found those documents were photocopies of altered documents.

Then on October 17, Singh applied for another IRD number under the name of Darm Singh.

He used a New Zealand driver's licence to support that application.

- NZPA