Jail for vineyard contractor who owed $400,000

The jailing of a vineyard contractor for almost $400,000 in unpaid taxes and fines highlights a big problem in Marlborough, says the region's contracting federation.

The contractor, Linton Francis Brydon, 38, was sent to prison for six months on Tuesday after admitting 10 charges of failing to account for tax deductions and 26 charges of failing to furnish tax returns.

Marlborough Contractors Federation chairman Bob Lee told the Marlborough Express yesterday the problem of unpaid taxes was "huge in Marlborough" and legitimate operators, who were often undercut by dodgy contractors, suffered.

"It is the way the industry is set up. We have new entrant contractors coming in every year and undercutting the price."

He said the federation was looking at entering an industry partnership with Inland Revenue to ensure all contractors had the tools to manage their tax returns properly.

The court heard that the Blenheim man took over an agricultural contracting business in February last year but failed to come to terms with the requirements of the business. Not a "paperwork person", he paid his workers in cash and kept little record of the business revenue.

By the time Inland Revenue realised what was happening in March this year, there was no record of the sum of almost $80,000 in taxes owed to the department.

Brydon ended up owing $393,045, made up of $78,224 in PAYE tax, income tax owed by the business and associated fines and penalties.

Defence lawyer Philip Watson said there was little chance Brydon would ever be able to clear the debt and it seemed Brydon's downfall had been alcohol and gambling addiction.

"I think it is fair to say there are some people who are better off as employees than as management, and my client would be one of those people," he said.

Brydon shied away from paper work, did not have a company cheque book and dealt almost exclusively in cash with few paper records, he said.

Judge David McKegg put the offending down to Brydon's ineptness.

"I must conclude either this was for the express purpose of avoiding paying tax or because you were completely and utterly inept.

"I cannot draw the former conclusion so opt instead for ineptness."

Judge McKegg said prison was inevitable but granted Brydon leave to apply for home detention.

- NZPA