Sanders in 2020 agreed to the Kaizon group buying The Fire Guys.<\/p>\n
\u201cBefore the acquisition, The Fire Guys was a lean, well-run business. We employed over 30 staff and 100 contractors, and we met all our financial obligations, including PAYE and other IRD requirements,\u201d Hogg said.<\/p>\n
\u201cWe had doubled our revenue and profits year-on-year, and our reputation was strong.\u201d<\/p>\n
Hogg said Sanders held directors\u2019 meetings and showed reports that misrepresented the company\u2019s real position.<\/p>\n
PAYE deductions, including child support, were withheld from staff pay, Hogg told the court.<\/p>\n
He said Sanders displayed \u201cmindless arrogance\u201d and diverted funds away from tax obligations.<\/p>\n
\u201cI personally injected $90,000 into the business to help pay suppliers and contractors during a tough period, many of whom were refusing to work due to non-payment,\u201d he said as he stood in court to read a victim impact statement.<\/p>\n
\u201cThe consequences for me were devastating \u2013 financial hardship, severe stress, the breakdown of my marriage, reputational damage in the specialised industry which I\u2019ve operated in for 20-plus years.\u201d<\/p>\n
Defence lawyer Julie-Anne Kincade KC said Sanders had an unblemished record.<\/p>\n
Kincade referred to a divorce Sanders had.<\/p>\n
\u201cHe didn\u2019t take any assets out of that marriage and left them all to his wife.\u201d <\/p>\n
But he did take shares in companies and believed he could trade his way out of problems, Kincade said.<\/p>\n
The court heard Sanders went to Australia after the Kiwi businesses hit the skids, then returned when it became clear Inland Revenue was prosecuting him.<\/p>\n
Sanders on LinkedIn today described himself as director of operations for Chubb Fire & Security in Rydalmere, New South Wales.<\/p>\n
Kincade said Sanders had not tried to dodge justice.<\/p>\n
She said a warrant was issued in June and proceedings lodged in Christchurch for reasons unexplained, but Sanders did not know he had to be in court that day.<\/p>\n
She said Sanders learned of the proceedings in July, but his first appearance was in Auckland in September, when he entered guilty pleas.<\/p>\n
The court heard Sanders had been declared bankrupt in Australia and New Zealand.<\/p>\n
\u201cThere\u2019s the deep shame he feels. It\u2019s been overwhelming for him,\u201d Kincade said.<\/p>\n
\u201cHe\u2019s gone from someone who\u2019s successful in business \u2026 to this situation now where everything has collapsed.\u201d<\/p>\n
For Inland Revenue, prosecutor Kelly King said there was no prospect of reparation.<\/p>\n
King said Sanders knew that if he left New Zealand, but returned when charges were laid, he\u2019d likely get a discount at any sentencing.<\/p>\n
She said that in the industry linked to fire protection and security, trust was important, and Sanders had betrayed that.<\/p>\n
She acknowledged he\u2019d done good community work as a St John ambulance service volunteer.<\/p>\n
But King said it was concerning to see Sanders \u201cdeflecting\u201d by implying company board members had some culpability or responsibility for non-payment of tax.<\/p>\n
Sanders admitted four charges of aiding and abetting non-payment of tax.<\/p>\n
Judge Steve Bonnar, KC, said Sanders was the \u201ccontrolling mind\u201d of the companies.<\/p>\n
\u201cThis was not your money. It was not the company\u2019s money. It was the employees\u2019 money. It was the employees\u2019 tax.\u201d<\/p>\n
For The Fire Guys alone, PAYE was not paid on 21 occasions, amounting to about $1,073,293.<\/p>\n
For Kaizon companies, about $330,000 went unpaid.<\/p>\n
The deceit happened despite the companies getting Covid wage subsidies worth about $740,000.<\/p>\n
He said Covid did not mean any business could abuse the tax system.<\/p>\n
Sanders nodded as he sat in the dock.<\/p>\n
Judge Bonnar said Sanders had claimed he had to choose between laying off people and not paying PAYE.<\/p>\n
\u201cYou told the probation officer that the IRD \u2018pushed\u2019 the companies into liquidation.\u201d<\/p>\n
Prosecutors wanted a starting point of about four years and six months\u2019 jail.<\/p>\n
The defence called for two and a half years\u2019 jail before discounts.<\/p>\n
Judge Bonnar said Sanders\u2019 offending had aggravating features.<\/p>\n
First was the amount of money, second was the duration of offending, and third was the breach of trust.<\/p>\n
He chose a starting point of three years and 10 months.<\/p>\n
Sanders got a 25% discount for early guilty pleas and 10% for previous good character.<\/p>\n
He also received discounts for remorse and for adverse consequences he\u2019d already faced.<\/p>\n
That meant a discount of 50%, and a result of 23 months, just below the two-year threshold for considering home detention.<\/p>\n
Sanders was told to travel home and wait for a field officer to connect a home detention tracker.<\/p>\n
The court heard Sanders would go to Australia after his sentence.<\/p>\n