A Kiwi living in Australia has returned home to serve a home detention sentence for misapplying PAYE funds, resulting in $1.4 million not being paid to tax authorities.
Matthew Keith Sanders was sentenced on three representative charges and a single further charge of aiding and abetting four companies in deducting but not passing on PAYE to Inland Revenue over 38 periods.
According to IR, Sanders was the “controlling mind” for four Auckland companies involved in fire sprinkler installation and maintenance, a building consultancy service, a general engineering company, and an investment company.
All companies were required to account for deductions from employees’ wages, including child support payments, and pay the funds to IR.
Sanders was the only person in a position to authorise the misapplication of the funds.
Just under $1.4 million in unpaid IR payments was owed by the companies he controlled. The companies also received more than $740,000 from various Covid-19 relief schemes.
Sanders had been living in Australia, but returned to New Zealand to avoid extradition.
He appeared in the Auckland District Court on Wednesday, where he was sentenced to 11 months’ home detention.
It was a significant discount to the judge’s starting point of three years and 10 months in prison.
IR said early guilty pleas, remorse, co-operation, his voluntary return from Australia and other significant personal factors played a part in the reduction of his sentence.
