KEY POINTS:
A Pakistani dairy owner who had not paid nearly $200,000 in taxes claimed in court that "where I come from we didn't have to pay tax".
Farrukh Hashmi, 42, pleaded guilty in Napier District Court yesterday to 37 charges of failing to pay income tax and gst.
He admitted failing to pay $195,473 on undeclared earnings of $486,797 between 2002 and last year.
Hashmi told The Dominion Post he was unaware he had to pay tax.
He said in Pakistan hardly anyone paid taxes.
"I worked there but I never paid taxes."
Hashmi, his wife and their daughter immigrated to New Zealand from Karachi 12 years ago and have run the Carlyle Street Store in Napier for four years.
IRD interviewed Hashmi in January.
He told investigators he was not aware of his responsibilities, and that "where I come from we didn't have to pay tax".
Hashmi said he intended repaying all the debt.
After interest is calculated he will probably owe the tax department more than $300,000.
He was ordered to surrender his passport and was remanded on bail until December 5.
- NZPA
