Additionally, in 15 GST periods between January 2023 and May 2025, when $610,005.31 of GST was due, no payments were made.
From January 2023 to July 2, 2025, Clarke personally gained about $1,952,000 from the company.
He used the available money to pay company expenses and transferred money for living expenses and home renovations.
Even when the renovated house was sold, none of the proceeds was used to reduce the amount owed to Inland Revenue.
Phil Clarke & Son was put into liquidation by a shareholders’ resolution on July 8, 2025.
Companies Office records show Clarke is the company’s sole director and shareholder.
He has since been adjudicated bankrupt.
The court was told the victims in this case are Inland Revenue and the wider community. The unpaid tax is lost to the tax base and the amount makes that a substantial loss to the community.
Judge Tom Gilbert heard the use of tax money as working capital and personal income gave Clarke an unlawful competitive and lifestyle advantage over other taxpayers who paid their tax.
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