Despite resigning as a director, he continued to control the company, filing GST returns, income tax returns and applications for several Covid-related relief schemes.
Reynolds’ GST-related offending netted him at least $47,865.51.
The GST refunds were paid into NZDMH’s bank account, which Reynolds controlled.
He also filed false income tax returns for NZDMH totalling more than $30,000 in tax losses despite the company having made no sales nor incurred any expenditure.
Reynolds went on to dishonestly apply for $84,000 in resurgence support payments (RSP), Covid support payments and Small Business Cashflow Scheme (SBCS) payments.
He received $36,800 before Inland Revenue discovered and stopped the payments.
Inland Revenue asked Reynolds for more information to support his SBCS application, to which he provided a number of invoices purportedly issued by NZDMH to customers to create the appearance of business income when there was none.
When asked for further information on his RSP application and his income tax returns, Reynolds provided altered bank statements to suggest business income and expenditure.
Inland Revenue labelled Reynolds’ offending as premeditated.