However, Inland Revenue (IRD) said the Ah Ching’s continued to trade under these company names and made an estimated $1.8 million in taxable profit over nine years.
A significant portion of business receipts from the companies were either deposited directly to Ruta Ah Ching’s personal bank account and/or transferred from bank accounts that she was a joint signatory.
Bank analysis showed that the few GST returns that were filed after an Inland Revenue audit, were partially false.
In total, $560,843.02 in tax was evaded.
Sentencing Judge Andree Wiltens said the evasion was a “sustained and deliberate course of conduct by both Mr and Mrs Ah Ching over a period of some eight years”.
Wiltens said by “diverting income through multiple bank accounts there was deliberate obfuscation which prevented IRD properly assessing the tax due”.
“Attempts by IRD to clarify the situation were met with zero co-operation and compliance.”
The couple were also ordered to pay $1000 a month in reparation for the next five years, totalling $65,000.
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